Why You Need to Trade at 2:37 PM Tomorrow

It's been a weird phenomenon, but selloffs from the Fed create trading opportunities to the upside. Look at what happened in June...

An independent and profitable state of mind.

Tuesday, July 25, 2023

Dear Fellow Expat:

Tomorrow, the Federal Reserve will raise interest rates by 25 basis points. Everyone and their mother will lock eyes on CNBC and Bloomberg at 2:30 pm…

They’ll hang on every single word spoken by Fed Chair Jerome Powell. Are they still forecasting a mild recession at the Fed?

Are asset prices (equities) too high?

All questions will be answered.

Not that it matters - the only thing that actually matters is price action.

So, let me make this easy for you. When the Fed raises rates tomorrow, don’t do anything at 2 PM.

Wait until Jerome Powell speaks. Don’t worry… he’s going to drone on and on… and on… for a while.

But, come 2:35, pay very close attention to the price action of the market.

This Is a Very Reliable Pattern

If the S&P 500 falls into its third-standard deviation (in layman's terms, that'd be an aggressive move lower - you'll know it when you see it) while he talks, it’ll likely be a good opportunity to …