Misinformation from the Fed is pushing investors into wait-and-see mode.
This guest article was written by James Hyerczyk, financial analyst at FX Empire.
U.S. stocks ended Monday’s session sharply higher, after Fed Governor Lael Brainard said it would be wise for the central bank to keep monetary policy loose. This surprised traders because many thought she would offer hawkish commentary. As a result of her comments, all three major indices rallied late to close higher for the day.
To some, Brainard’s comments may have taken a September interest rate hike off the table, but the price action in the major indices still suggests that investors are not going to give in that easily. Last Friday, the Dow, for example, lost nearly 400 points on hawkish comments from Boston Fed Governor Eric Rosengren. Yesterday, after Brainard’s speech, the Dow gained back about 200 points.
This suggests that investors are going to go into the September 20-21 Fed meeting with an open mind since anything can happen. Even after Brainard’s speech, Atlanta Fed President, Dennis Lockhart, once again sounded the hawkish alarm when he said a “serious discussion” on raising rates was warranted at the central bank’s next meeting.
After Rosengren’s hawkish comments on Friday and Brainard’s dovish comments on Monday, the ‘information’ and ‘misinformation’ as some traders are calling it, have pushed investors into wait-and-see mode. Additionally, on Friday, Fed Funds traders thought the chance of a September rate hike was 30%. Before Brainard’s speech on Monday, the number had dropped to 24%. After the speech, they were down to 20%.
Looking at the September E-mini S&P 500 index chart in conjunction with the other data, we see a market straddling a key retracement zone. In other words, Rosengren’s comments were not hawkish enough to sustain the sell-off and Brainard’s dovish comments were not strong enough to start a new rally. Trading at or near the short-term 50% level at 2148.25 is proof of this.
This chart pattern could also be an indication that investors are compromising and saying that rates won’t rise in September, but they are likely to do so in December.
Leading up to the Fed interest rate decision on September 21, I see a sideways stock market with the September E-mini futures contract trading both sides of its short-term 50% level at 2148.25, and the September E-mini futures contract straddling its short-term 50% level at 18223.
Until September 21, it is suggested that you remain flexible and not ask for too much from the market. I don’t expect a breakout move in either direction so it would benefit you to trade both of the 50% levels, playing for short-term moves. Try to avoid buying strength and selling weakness because the volume won’t be there to sustain the moves.
This guest article was written by James Hyerczyk, financial analyst at FX Empire.
U.S. stocks ended Monday’s session sharply higher, after Fed Governor Lael Brainard said it would be wise for the central bank to keep monetary policy loose. This surprised traders because many thought she would offer hawkish commentary. As a result of her comments, all three major indices rallied late to close higher for the day.
To some, Brainard’s comments may have taken a September interest rate hike off the table, but the price action in the major indices still suggests that investors are not going to give in that easily. Last Friday, the Dow, for example, lost nearly 400 points on hawkish comments from Boston Fed Governor Eric Rosengren. Yesterday, after Brainard’s speech, the Dow gained back about 200 points.
This suggests that investors are going to go into the September 20-21 Fed meeting with an open mind since anything can happen. Even after Brainard’s speech, Atlanta Fed President, Dennis Lockhart, once again sounded the hawkish alarm when he said a “serious discussion” on raising rates was warranted at the central bank’s next meeting.
After Rosengren’s hawkish comments on Friday and Brainard’s dovish comments on Monday, the ‘information’ and ‘misinformation’ as some traders are calling it, have pushed investors into wait-and-see mode. Additionally, on Friday, Fed Funds traders thought the chance of a September rate hike was 30%. Before Brainard’s speech on Monday, the number had dropped to 24%. After the speech, they were down to 20%.
Looking at the September E-mini S&P 500 index chart in conjunction with the other data, we see a market straddling a key retracement zone. In other words, Rosengren’s comments were not hawkish enough to sustain the sell-off and Brainard’s dovish comments were not strong enough to start a new rally. Trading at or near the short-term 50% level at 2148.25 is proof of this.
This chart pattern could also be an indication that investors are compromising and saying that rates won’t rise in September, but they are likely to do so in December.
Leading up to the Fed interest rate decision on September 21, I see a sideways stock market with the September E-mini futures contract trading both sides of its short-term 50% level at 2148.25, and the September E-mini futures contract straddling its short-term 50% level at 18223.
Until September 21, it is suggested that you remain flexible and not ask for too much from the market. I don’t expect a breakout move in either direction so it would benefit you to trade both of the 50% levels, playing for short-term moves. Try to avoid buying strength and selling weakness because the volume won’t be there to sustain the moves.
James A. Hyerczyk is a financial analyst for FX Empire, a leading financial portal. James has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann. James A. Hyerczyk is a senior analyst at FX Empire. He has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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