Loading ...Anticipation
Like the song by Carole King (think Carly Simon had the big hit with it), the stock market has been anticipating tomorrow’s FED decision. These first two days of the trading week were in “anticipation” of what I believe the FED will do. As I said last week, they are way behind the curve and should raise 1/4 point tomorrow. This is the least damaging move as opposed to doing nothing or hiking by 1/2 point. Why would you do nothing now and have the markets believe you need to do 1/2 in March. Start the medicine now and gradually get to wherever you are going. If I am correct, the market should have the biggest part of the bounce that I called for at yesterday’s bottom, tomorrow afternoon. As I said in a comment on an earlier post today, it won’t be that much or last very long, just enough to work off the extremely oversold position before the NASDAQ 100 in particular, resumes it’s decline.
Now that I think about it, it might have been Carol herself that had the big hit?
Chartmaster — do you have any prediction on POG reaction over short term and medium timeframes?
Don’t have a specific price target at this time. History says when the FED initiates a new rate hike cycle, gold and silver begin bull markets. I expect the rate hike cycle to begin tomorrow. Even if it doesn’t gold and silver going higher in the short, intermediate and long term from here.
Good point about the merits of raising 1/2 later on. But gambling on FED outcomes is risky stuff. I have found it’s just best to be out of the market on FED days.
I am not gambling on what the FED does or doesn’t do. The charts and technicals have led me to my two themes and I have been trading accordingly. The NASDAQ 100 selloff has begun first and been the stronger trend, so far. Gold and silver will kick in soon. Maybe as soon as tomorrow.