March 16, 2022… Revisited

Once upon a time, you held it fine. Had the bull run, the trend was divine, didn't you?

Action to Take: The Fed takes center stage today amid expectations for a third consecutive rate cut. While a 25-basis-point move seems inevitable, the real focus turns to Powell's guidance for 2025. Any hawkish tone regarding persistent inflation could trigger sharp reactions as options traders anticipate more cuts than are currently priced in.

Look for the Fed's updated 'dot plot,' which offers clues about what's to come.

The key to navigating today's volatility lies in Powell's 2:30 press conference - particularly the 2:35 window when algorithmic trading often reveals the true market reaction. These computer-driven moves typically show a sharp spike followed by late-day profit-taking. If you're unfamiliar with this setup, read more about it here.

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Momentum: Selling pressure intensified Tuesday as ten of eleven sectors closed lower, with particular weakness in materials and energy. Very low insider buying, mounting institutional outflows, and persistent concer…