Hey friend,
Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for March 23, 2023
Yesterday’s rate decision was an increase of .25% – exactly what was expected by markets. The Fed acknowledged conditions have changed since the bank scare we’ve had over the past two weeks, causing him to CHANGE his interest rate target from 5.5% – 6% to 4.75% – 5%.
In effect, this is a rate cut (at least in his projection), which is good news. Disinflationary effect of tighter credit resulting from the banking scare is a big concern. In fact, the Fed indicated the FOMC considered a pause, and this is what they may do at the next meeting.
Regardless, there “may be” (his words) a pause at the next meeting, but this would be data dependent. Markets are digesting this mixed bag of new information, with volatility high after the rate decision and Fed statement.
This is a net positive, and there is profit-taking today from two strong days on Monday and Tuesday. The Fed is likely done raising rates now. Some expected the Fed to either announce or signal a pause, or indicate the possibility of rate cuts later this year, so there is disappointment the Fed did not do this.
However, we are very close to a pause, but the data, which is showing an 8-month downtrend in inflation, wages go down, unemployment increases, and housing decreasing, which will rule the day!
The trends are favorable, including the Fed’s step back on his target interest rate and declining inflation data, so the outlook is very positive.
Recommended Strategy
FIRE Trader – As markets fully digest the full implications of the Fed’s move, this could create numerous FIRE pattern setups that you can use to book fast gains.
A Bit More About Me
My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.
I’ve also:
- Been an adjunct finance professor for nearly 20 years
- Worked as a financial consultant with Merrill Lynch managing millions of dollars
- Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
- Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world
My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions.
My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.
This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.
I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.
Charles Green
Senior Market Analyst, Traders Agency
