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Intrest Rate Hike and Market Sell Off

By Andrew Aziz  |  
Andrew's Newsletter  |  
Apr 22, 2022

Dear Traders,

This morning, I had another trading loss because of choppiness in NVDA. Brian had a much better morning than I did, as his $200 Netflix puts expired today and he made literally tons of profit. You can watch the recap that Brian and I posted here. Thankfully, my trade in Tesla was better, and that made me some profit.

Economic News Headlines

The market sold off for the last two days, primarily because of a very hawkish Federal Reserve chair Jerome Powell. Shorter-dated Treasury yields surged after Powell reiterated overnight a bias for aggressive rate hikes. Investors are now betting on half-point increases in May, June, and possibly July. Powell outlined his most aggressive approach to taming inflation to date, potentially endorsing two or more half percentage-point interest rate increases. Over in Europe, the European Central Bank joined the chorus, with officials signaling that euro-zone borrowing costs are likely to move up in the second half for the first time since 2011.

Market turmoil pain has not been strictly reserved for only the US. It’s been a painful week for traders of China’s stocks, bonds, and currency too. Sentiment toward Chinese assets has soured as chaotic Covid lockdowns are slowing economic growth and policy stimulus falls short of investors’ expectations. Domestic equities have lost about $2.7 trillion of market value this year, prompting the authorities to step up efforts to halt the decline. The offshore yuan posted its biggest weekly loss since its surprise devaluation in 2015. China is heading for the largest oil demand shock since the early days of the pandemic. Crude headed for its third weekly loss in four.

A Russian general said that Moscow aims to extend control over the entire south of Ukraine. German Chancellor Olaf Scholz pledged to continue shipping weapons to Ukraine, yet insisted an open conflict with Russia that could lead to nuclear war must be avoided at all costs. Poland has asked the European Commission to use the money from seized Russian reserves and assets to help finance aid for Ukrainian refugees. New satellite images show apparent mass graves near Mariupol. European Union countries froze 35 billion euros of assets in response to Russia’s invasion during the first 5 1/2 weeks of the war. Rebuilding Ukraine will cost $600 billion, the nation’s prime minister said. The US blasted China’s support for Russia and vowed to help India end its dependence on Russian weapons.

At Peak Capital Trading…
I want to take this opportunity to remind you that we have some seats left for our 5th Peak Capital Trading boot camp. Traders who attend our boot camp will receive an intense 3-month mentorship and training program that will take their trading to the next level. The details of the program are on our website. It includes:

  • 1hr per week of semi-private mentorship with your assigned Captain and Co-Captains
  • 1hr webinar each week focused on your TradeBook
  • 1hr webinar each week directed toward improving your trading strategy and psychology
  • Access to a private mentorship support group (only for Peak Capital Trading traders)
  • Access to review and feedback from our senior traders
  • Access to a 1hr group mentorship session with me and other senior traders
  • Access to a complete (and new) library of proprietary trading education materials and resources (this is different from what we offer at Bear Bull Traders)

It is best to talk to our previous participants to learn whether or not the boot camp will be a good match for you. To help you in making a decision, we have compiled a playlist of testimonials from previous boot camp traders. You will see that it includes both positive and negative feedback. Here’s the link.

And Finally…

Ardi, Brian, and I recorded another episode of AfterHours with Traders. Ardi is spending considerable time preparing the best, funniest, and most interesting content for us. The episode will be posted shortly and you will be able to watch it on YouTube. Please support him with likes, comments, and your subscription to our YouTube channel, and make sure to also follow Ardi on Twitter.

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: Our tech team at Peak Capital Trading has been busy developing TradingTerminal.com. Even though it is still a prototype, I hope you will take the time to have a look at it. There’s lots of useful information on the site that will assist you in your trading.

PS3: Lastly, if you are not yet an Elite member, I encourage you to take advantage of our “Hello Spring” promotion. You will find the details here. You will receive 50% off the price of an Elite annual membership and in return you will gain access to all of our excellent educational and training resources.