Stocks are up big across the board this morning, which is a good sign heading into the FOMC rate decision.
But a warning…
There are 424 stocks right now making 90-day highs ahead of this week’s crucial Fed data and rate cut, which means we are big-time overbought. We also have Retail Sales coming this morning, but they’re monthly numbers that are subject to revision.
A strong number might give us a quick jolt, but I think everyone is really waiting for the rate cut news at 2 p.m. ET on Wednesday.
For gold, I think a 0.25% rate cut wouldn’t do too much to tamp down the big run we’ve seen there. If the cut is 0.5%, which I don’t think it will, then gold could sell off.
I’ve been warning about crude oil, and if it doesn’t break the current resistance level just above $71 and starts coming back down, it should present some juicy short plays on the weakest stocks.
Devon Energy (DVN) and Halliburton (HAL) were the two weakest on Monday.
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. Will Powell’s Rate Cut Trigger a Crash?
Jerome Powell’s upcoming Fed announcement on Wednesday could be the trigger event for an epic market crash!
You see…
The Fed Chair’s anticipated rate cut might signal the Fed’s acknowledgement of economic weakness… provoking a market collapse.
Meanwhile, investors and traders expecting a cut could start selling BIG TIME if the cut size disappoints… or if it confirms recession fears… leading to significant volatility.
That’s why I’m hosting a special Flash Crash Briefing with fellow trader Jeffry Turnmire at 1 p.m. ET TODAY, Sept. 17.
We’re going to discuss:
- My top two stock picks to look at before the announcement so traders can be positioned for what could be a “lightning move” in the markets.
- Jeffry’s No. 1 hedge trade: He puts REAL money into so you can see how a pro trader with actual skin in the game plays the Fed’s announcement.
- How to protect your portfolio no matter which way the market turns.
Of course, we can never guarantee gains or prevent losses…
But we’re both expecting a palpable reaction to the Fed’s announcement
And you’ll get all our picks FREE just for attending…