A1 Trading Company

Ticker tape by TradingView

January 11, 2022

Fed Plan In 2022 Released, Do This Now

Frank Cabibi

Fed Chairman, Jerome Powell, is giving his testimony today and has already mentioned a few things. One, that tapering is confirmed to end in March, and that interest rates will likely rise later this year. The Fed still plans to adjust their monetary policy throughout the year as the recent Omicron surge pans out and uncertainty lingers in investors minds.

The Chairman also stated that the recovery has been impressive thus far and the banking system in continuing to look stronger. We can likely see better earnings throughout the year to, and this could be a major driver for the market in value companies as well as growth.

Fed Plan To Raise Rates Has Market Higher

Fed Plan To Raise Rates Has Market Higher
SPX500 on 1D timeframe rejecting the lows from support on the rising trend line and pushing the 50 DMA. RSI reading is at 50.

COT data also suggests a move higher as interest is gaining across the board and futures contracts are being picked up. Retail is also trying to get in on the action as investors are now 99% long on the NAS100 tech stock index. The S&P and US30 are trailing NASDAQ's gains, but are up overall for the day.

Do This Now

On a technical scale, if price on the indices closes with the bullish hammer they have now, we could likely expect another test at the highs. That is about a 2% move for the SPX500 and a 5% move on the NAS100. It's tough to say how long this rally will last, and it could even dwindle by the end of today, but it will be important to watch price action on today's candles and see where we end up at the close. So, before you trade do a quick analysis on the charts to see whether or not you feel confident in the potential market moves later this week.

A1 Edgefinder

#1 Market Scanner Tool
Take 10% off using code "READER"
GET ACCESS NOW
Want to See Our Trades?

Join The VIP Community!

Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
Listen to More Episodes
Why the New FOMC Decision Matters

Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]

Read More
Shocking CAD Inflation News

Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]

Read More
2 Paths for Aussie Bears

At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram