Stocks are up almost across the board as we begin a new trading week that’s likely to see another Federal Reserve rate cut. Institutional traders aren’t going to make any big bets ahead of Wednesday’s 2 p.m. rate cut announcement.
The Fed should be raising rates instead of lowering them, and I’m sure he’ll mention something about inflation rearing its head again after the Consumer and Producer Price Indexes showed inflation is higher now than it was a year ago.
The bond market (TLT) has been falling since they last cut rates, which is proof that the rate cut shouldn’t have happened.
We also have a lot of Fed data this week with Retail Sales at 8:30 a.m. ET on Tuesday followed by Industrial Production, then Housing Starts and Permits at 8:30 a.m. on Wednesday before the rate cut.
Volume should pick up after the FOMC announcement, and then we’ll have GDP at 8:30 a.m. ET on Thursday, and then Personal Income and Outlays and Consumer Sentiment on Friday — so it’s a BIG week for Fed data — as well as quad witching, when a lot of options (including monthlies) will expire.
If the Fed was honest, it would admit its mistake in cutting rates and instead hike them. That would cause the market to sell-off for a few days but that would be the correct move.
Crude oil is finally on the move higher…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. LIVE AT 1 PM ET: 3 Stocks Set to Surge as Soon as TODAY
I’ll be on Zoom at 1 p.m. ET today, Dec. 16, with my friend Chris Pulver in just a few hours.
My seasonality software just identified THREE little-known stocks showing the same pattern… And for the first time ever, Chris’s separate seasonality tools are showing the exact same setup.
These 3 stocks are predicted to surge as early as today!
The hold time? Just 10 days.
And we’re giving you the tickers absolutely free.
Of course, I have to mention that all trading carries risk. Past performance doesn’t guarantee future results, and you should never trade with money you can’t afford to lose.
That said, when two completely different seasonality tools align like this, I pay attention.
In my near-31 years of professional trading, including managing money for some of the world’s wealthiest families, I can tell you with confidence that these look like killer setups.
