Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for June 15, 2023
True to form, even though the Fed paused interest rates, he used language that confused the market, by suggesting a couple more rate hikes may be necessary because “inflation pressures continue to run too high.”
The last meeting he used language that amounted to a pause, commenting “if warranted” rates will be increased.
However, there have been 10 consecutive months of declining inflation (food is now coming down, too, and 10 consecutive months of rate hikes).
What to make of this?
The Fed wants to keep speed bumps in place to slow the stock market. If he thinks inflation pressures continue to run too high, why pause? He knows the rate hikes already in the pipeline have not fully affected the economy, which he admitted during his Q&A yesterday.
So what does a trader do now? The market is not buying it; hence, the reason why the market has grinded higher over the past 4 rate hikes this year! Any way you slice it, the Fed is nearly done!
What is more important now is the momentum and paradigm shift in artificial intelligence. These stocks have ignored the Fed and led the current bull market starting in October 2022, which has only accelerated over the past few weeks with NVDA blowout earnings and gigantic increase in demand for AI semiconductor chips, indicating an acceleration in adoption.
This is the real story and game changer and what’s most important going forward, making the elusive date of a Fed definitive pause a footnote.
Any slippage in the market in response to the Fed meeting and uncertainty over interest rates is a buying opportunity, especially to the leadership stock in AI, which finished strong yesterday after the Fed meeting.
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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
