Stocks are lower across the board Tuesday morning with just one more day before we hear the Federal Reserve’s next move, which is expected to be a quarter-point rate cut.
Markets are not firing on all cylinders right now ahead of next week’s Christmas holiday, with the equal-weighted S&P 500 ETF (RSP) falling below its 50-day moving average, which is a red flag.
The Magnificent 7 ETF (MAGS), meanwhile, is still rising, up about 13.5% the past month while RSP is flat.
This tells us that only a handful of mega-cap stocks are pushing the indices higher, and once that stops, look out below.
I’m not liquidating positions just yet because I’m waiting to see if we get a bounce after the likely rate cut news, which is priced in at a probability of 97.1%.
We got Retail Sales data this morning, which were mixed. This should give us a better picture of where we stand today, and Industrial Production at 9:15 a.m. ET is also another report to pay attention to today.
Then after the rate cut news Wednesday, we’ll get GDP at 8:30 a.m. ET on Thursday, and Friday is quad witching, which is when four sets of options expire, which could send volatility 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. What You Never Hear About Hedge Funds
The market’s been up and down since Trump won his second term…
But I’ve still managed to go 24 out of 24 on these trades:
In other words, that’s a 100% win rate on LIVE trades dating all the way back to June!
All thanks to a groundbreaking system that’s shown the power to help front-run 10, 20, even 50 of the world’s largest hedge funds who are all buying the SAME stock… at the SAME time.
Of course, I can’t promise winners or avoid losers. This is trading, and nothing is guaranteed.
But it doesn’t take a rocket scientist to realize that when dozens of hedge funds buy in at the same time… it’s an unstoppable force.
That’s why I’m excited to take you behind the scenes of this cutting-edge system…
So you can see — with your own eyes — how ANYONE with a regular brokerage account can get in front of some of these powerful setups.
And see how it’s been applied to large cap stocks like AMD, MMM and HD.
Past performance is not indicative of any future results. Trade at your own risk. From 12/16/2022 through 12/10/2024 on live trades, the win rate is 80.41%, and the average return is 13.26% on the options over an 8.43 average hold time.
