Federal Reserve’s Friendly Artillery Attack

By Andrew Aziz  |  
Andrew's Newsletter  |  
Jun 21, 2022
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Dear Traders,

The market gapped down significantly today after a strong and volatile day tied in with yesterday’s FOMC meeting. This morning, I traded at the Open and lost. You can watch the recap that Brian and I posted here. You’ll see where yours truly got chopped up left, right, and center, and ended the day with a big loss.

Today’s Global News and Financial Recap

Yesterday, the Federal Reserve launched its heavy artillery in a friendly attack toward an already beaten up Wall Street. They raised interest rates by 0.75% – the biggest increase since 1994 – and chair Jerome Powell said the central bank could go that high next month, too, in the battle against inflation. Get out of the line of fire, is essentially what he said. As for the prospect of a soft landing, meaning controlling prices without contracting the economy, even the Fed accepted that the US economy’s eventual touchdown may be a bit bumpier than previously hoped for. In other words, brace yourself for a hard landing!

The real trouble is not in the US, but in the already previously troubled Euro zone. Italy’s financial crisis has started and the emergency meetings of European central banks well deserve the title of “emergency”. The real depression most likely will start in Europe.

At Bear Bull Traders…

Today, for Thursday Mentorship, John has already wrapped up his regular weekly mentorship session that starts at 11am ET. Ed’s mentorship session begins at 4:30pm ET (with 30 minutes of after-hours trading commencing at 4pm ET) and Thor is up at 8pm ET.

On Friday, we are pleased to present an exclusive webinar with Nas, a seasoned member of BBT, entitled: Introduction to Trading Future(s). In this webinar, Nas will discuss transitioning to trading Futures – their advantages, nuances, and how he trades them on a daily basis to create consistent profits. He will also briefly cover what they are, where to trade them, and how best to manage your risk. Please join us at 11am ET for what I know will be an informative presentation.

And Finally…

Fed chair JPow will go down in history as either the hero who controlled the hottest inflation in 40 years with a soft landing or as the person blamed for destroying the strongest economy of the world and sending it to a great recession. Alan Greenspan, the 13th chair of the Federal Reserve from 1987 to 2006, has gone down in history as being responsible for the housing bubble and the ensuing 2009 financial crisis because he ignored all of the warning signs that were out there. JPow initially made a big mistake by not anticipating the fastest price gains in four decades. He called them “transitory” (which is now a dirty word), and got blamed for being too slow to respond.

Which one do you think JPow will go down as? I personally think it is too early to write the history. Let me know your thoughts on Twitter @BearBullTraders.

To your success,
Andrew

PS1: If you have not already, I urge you to try out our free web-based trading simulator
at stocktradingsimulator.com. It’s conveniently available 24/7, whenever you have time
to practice honing your trading skills.

PS2: Although it is still in a beta version, you can visit tradingterminal.com to do research on stocks you’re interested in. While we have not perfected it completely yet, it is a great place to not only research stocks, but also crypto and forex, as well as catch up on the latest news. There’s even an earnings calendar to assist you in making trading decisions.