Boy oh boy, the Federal Reserve has painted itself into a corner with the mess it’s made of handling inflation, which hasn’t been so “transitory.”
And we’ll find out its next move on Wednesday when we get the latest Fed interest rate hike news, with a lot of experts pricing in a 0.75% hike.
Following Friday’s 8.6% year-over-year rise in inflation, the Fed is woefully behind the curve… And this is what happens when you don’t do what you’re supposed to.
The TLT broke its previous low Tuesday. However, it looks like the bond market wants to go back into its recent range. If that was in fact the low, it’ll be interesting to watch because the bond market and interest rates have an inverse relationship…
But I believe the majority of downside pressure is already priced into the market…
That’s because the number of Nasdaq 100 stocks trading below their 200-day moving averages is about 8%, close to where it was in 2008. Momentum levels on the Nasdaq 100 haven’t been this low in over two decades.
So if you think the market’s going to crash or bear out from here, I have some news for you… It’s just not going to happen.
The Average True Range is a technical indicator that measures volatility by decomposing the entire range of an asset price for that period. Simply put, a stock experiencing a high level of volatility has a higher ATR, and a low-volatility stock has a lower ATR. The ATR may be used by traders to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The ATR does not indicate the price direction — rather, it is used primarily to measure volatility.
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We just got the largest year-over-year increase in inflation we’ve seen in over 40 years, despite being told last year inflation has peaked! And Jeff Zananiri has some words.
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