The Daily Ticker 12-15-22 | New Opportunity

12-15-22 | A Question of Opportunity.

As the S&P 500 continued to drift for the last 4 weeks, we needed a new catalyst to shake things up. And we got one.

The key FOMC announcement was all about the language.What Jerome Powell said after he confirmed the 50bps hike, was  what we needed to know. And he did not disappoint.

It took some time but this statement has worked its way into the overnight price action, “he “doesn’t have a plan to pause or take a reversal path.”

Pretty clear. And that’s what the markets need to create an obvious bias (trend). The market hates indecision. Earlier this week we mentioned that each piece of “good news” was met by selling.

Smart money sells on the way up.

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The rally that began in mid October was fueled by hope. The first signs that higher interest rates caused inflation to slow. But many of us in the real world are still feeling the pinch of a $40 breakfast for two people to go to the diner.

Inflation and higher costs to borrow money are rippling through growth companies that can’t sustain a workforce without the net margins a company needs to fuel growth. Reported layoffs are rampant. 

A sure sign things aren’t getting better. 

I believe the FOMC is doing what they must to clean up their QE mess. Today’s alcoholic beverage steals tomorrow’s happiness. The high of 2021 is the hangover of 2022.

What many don’t realize is that the economy is a massive machine. It takes time for the pain to work its way through the system.

Today we get jobless claims data. That’s the one I’ll be watching for the next 3-6 months. When we see headlines about companies opening the door and looking for more help, that’s when to sit up. 

Does that mean lack of opportunity for traders? Absolutely not! We will have plenty to do.Each market cycle produces new leaders, even a bearish one. Most likely we’ll be buying “boring stocks,” things we need no matter what. And visiting stores like #COST and #WMT.

Bargains at Walmart are one thing. But if you maintain your composure, and protect your capital, we’ll see some amazing companies on sale in the spring. 

And those positions will lead to generational wealth. Until then we’ll read the tape, grab some cash flow and sharpen our skills. 

So you have a choice, complain and close your eyes taking on massive losses. I choose a different path, I always have. I plan to improve my skills, get paid, and find opportunities.

This is one of my favorite visual tricks. It shows exactly how you view life. 

What do you see? OPPORTUNITYISNOWHERE.

Opportunity Is Nowhere or Opportunity is Now Here.

A good time to learn to hedge, buy puts (options) and get to know inverse ETFs such as the #SQQQ which goes up when the markets go down.

Pete

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