Interest Rate Uncertainty Is Scaring The Markets
Yesterday both Nvidia and the NASDAQ composite inked new record highs. The tech-heavy NASDAQ broke through 17,000 for the first time and the king of AI, Nvidia, continued its post-earnings upward tear to reach a record price of $1,140 per share.
Today it’s trading even higher. Nvidia is now up 30% in the last month alone!
In the broader market, stocks have shifted back and forth. Yesterday the S&P closed flat, and the Dow drifted about .55% lower.
This shift back and forth can be mostly attributed to two things:
- Waning optimism for potential rate cuts
- AI and high hopes for the technology
We will get the Personal Consumption Expenditures (PCE) index on Friday to provide more insight into this situation…
We already know the talking points:
Many Fed chairs have been beating the drum that we must see inflation cool drastically prior to any changes in interest rate policies. One by one, the Fed chairs have jumped on board to agree with this sentiment, with Minneapolis Fed Chair Neel Kashkari the latest to join the troupe.
To me, it’s all noise.
I think the carrot of interest rate cuts at the end of the proverbial stick is just that… A way to keep investors constantly hoping for good news without actually delivering anything.
And, heck, it sure seems to be working!
Somehow, their not cutting rates has become wildly bullish. How? Because the “potential” cuts have been used as a bullish catalyst 10 times whereas an actual cut would have only been one bullish catalyst.
At this point, I think that the carrot is rotting… But I won’t be surprised if they goose it up with some fertilizer in the form of Fed optimism next week or the week after and give it a go again.
But I don’t really care about the fundamentals here. I don’t think there are any fundamentals here.
What I care about is the volatility and market reaction and I think it sets us up particularly well for our Automated Options strategy.
We’ve been on a tear since I released it to the public in April…
Howard said…
“100% win rate with a profit of $2,200”
Anthony I. said…
“3 wins 100% of entries. Exceeded targets each time”
Ron D. said…
“I will be signing up for the lifetime today so far $3,777 in four weeks”
Ernie H. said…
“I participate in several services that have been profitable, but Automated Options has so far been the most profitable and the most worry free… After four trades I have already made enough to more than pay for FOUR lifetime memberships.”
Yury told me…
“Made $1,250… Easy… Bring on the next one!”
And on and on it goes!
Now, I don’t share those to brag… (Ok, maybe a little…)
But because I think we’re in the perfect position to continue tapping into this advantage.
Part of the reason we’ve been on such a fantastic run is because of the volatility caused by announcements and the activation of the rate cut carrot…
And with that still in play, I think everyone should take advantage of Automated Options.
— Nate Tucci
