Private details about this brand new indicator have now LEAKED!
When Mortgage Rates Drop, Stocks Can Rip — Here’s Why (and What to Watch)
Simple trigger: cheaper mortgages, stronger stocks
The market’s reaction to the Fed’s quarter-point cut was muted. Some would say the market had already priced that in before the announcement.
By the close on the day of the announcement, stocks were roughly flat. That tells us one thing: a single move doesn’t change much on its own. The next catalyst matters.
On yesterday’s Profit Panel, the team called out one big, simple trigger: lower mortgage rates.
If mortgage rates move down, housing gets a bump. That can free up cash (including cash-out refinancing) and kick extra spending into the economy. If that happens,, stocks can run.
We don’t need a speech to make that happen. Homeowners need payments that feel lighter. When that shows up, housing activity improves — and the market often notices.
A quick word on timing. We’re heading through an options expiration window (“triple witching”), with a chunk of dealer positioning rolling off. That can make the next day or two choppy. It doesn’t change the bigger point; it just means near-term swings can be noisy before a trend shows.
A Simple “What To Watch Next” Checklist:
- End-of-day closes: strength that holds by the close matters more than intraday pops.
- Housing-linked signals: better weekly mortgage activity and improving homebuilder price action.
- Broad participation: if leadership widens beyond a few mega caps when rates ease, the message is getting through.
How We’ll Handle It
Policy headlines set the stage. We trade evidence. That means we’ll wait for daily closes that confirm direction. When we do take on big risk — we’ll use defined-risk trades and sensible size. If price action doesn’t confirm, we wait.
At the end of the day, a gentle drop in mortgage rates can act like a small, targeted stimulus — first to housing, then to confidence, and sometimes to stocks.
We’ll let the closing prices tell us if it’s starting and only lean in when the tape proves it.
We’re back at it, watching more little-known, market-moving catalysts right here:
Click here to watch the on-demand replay!
To your prosperity,
The ProsperityPub Team
🎰 Did You Catch This?!
Power Bottleneck → Nuclear Boost?
Data centers need steady power. Policy is moving that way.
Alex Reid walked through why nuclear is back on the radar and the plain-English tickers he’s watching—without the hype.
Why Nuclear Is Back — And What To Watch!
The $4.7M move Wall Street would rather you never know about.
One key stock has a massive “cluster buy” signal flashing right now!
And four insiders just put $4.7 million of their own cash on the line!
Reserve your spot for the big reveal!
Quick hits from the rest of the show
- NVIDIA shook off a scare. China headlines hit it intraday, then it snapped back. A reminder: big leaders can whipsaw before they trend.
- Intel chatter popped up. Rumors about an NVDA tie-up met the “jockey vs. horse“ test: leadership matters as much as product.
- Tech strength:XLK printed a new all-time high. No overhead supply at new highs can help trends stick.
- Old-school winner:Cummins (CMI) also hit an all-time high. Diesel/natural-gas engines aren’t flashy, but strength is strength.
