Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for September 20, 2023
The Fed makes its interest rate decision and statement at 2 p.m. Eastern today.
It’s highly probable that Powell will do nothing today, except reiterate his position to keep Fed Funds short-term interest rate “higher for longer” until he achieves his 2% target inflation rate.
We have been essentially moving sideways in a range over the past three months between NASDAQ 14,200 and 13,200 (where there was a reverse head and shoulders).
The market will be trading in a range and will not sustain any move up until one of three things occur:
- NASDAQ closes back above 14,000.
- 10-year Treasury yield goes back down below 4%
- Inflation goes below 3%
Recent inflation data has been neutral, but the Fed does not want neutral. It needs to see the downtrend in inflation continue. We’ve made a lot of headway with inflation dropping from 9.5% last year to 3.7% today.
Not good enough. With oil prices creeping back up, getting below 3% and ultimately to 2% will take some time.
So volatility will continue, and OPPORTUNITY WILL INCREASE.
Year-to-date, we are slightly below the 50-day moving average, but more importantly, we are still above the YTD uptrend line on the NASDAQ. This is what’s most important, because “the trend is your friend,” even if it has not been very nice to traders lately.
The best thing to do in this current market environment is to exercise patience and get positioned in high quality stocks, such as the Magnificent 7: MSFT, GOOG, AMZN, NVDA, META, TSLA, AAPL.
If your time horizon is more than a day, week, or month, then this is a great buying opportunity.
We have enough short-term and long-term catalysts to move the market up once one of the listed 3 factors above are mitigated.
Time is on your side.
Recommended Strategy
FIRE Trader – Many seemingly “stagnant” stocks are like coiled springs… just waiting for a catalyst to let them shoot higher.
And Ross Givens has developed a strategy specifically designed for spotting these stocks…
That’s why later today at 4 p.m. Eastern he’s going live to show you how to use this strategy in person in light of the Fed’s decision.
So click here to save your seat for his live session later…
And he’ll explain everything then.
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
