loader image
WealthPress Logo
WealthPress Logo

1 Trade Is Still Working. And a Pullback Next Week Could Be a Buy

by | Nov 4, 2022 | Market Updates, Stocks

The Federal Reserve couldn’t help itself, hiking rates another 0.75%. That part was obvious, but it’s what Chair Jerome Powell said after that’s weighing on the market…

Powell tries to act like he doesn’t care about the stock market, but he does — and that’s the only place his interest rate hikes are doing anything…

The hikes aren’t bringing down the Consumer Price Index, which gauges inflation.  So it’s done nothing to help bring down rent, food or gas prices… The only thing they’re doing is creating an entire new wave of misery.

He missed his window to deal with inflation, and the best thing he could do is let the market sort it out.  

The Federal funds rate is now 4%. In a nutshell, here’s what that means…

By and large, banks would rather deposit their money at the central bank and get that 4% return risk free. That’s a better deal to them than loaning you money for a mortgage, and risk you losing your job. It also means they don’t have to give loans to new businesses, which also comes with risk. 

So if you want to grow as an economy, it’s a terrible place to be for too long. 

Meanwhile, the two-year Treasury is at 4.7% — and that’s a good return. So people are selling stocks, adding to the market misery, to get into that risk-free return. So this is creating big, big problems. 

The job market is also super strong, so that gives Powell more leeway to keep raising rates, hurting stocks more and more. It’s a vicious downward spiral. 

But there are still opportunities. There’s one trade in particular that’s proven time and time again to be the “easiest” money in a terrible market… 

Check out my video up top and let’s discuss this trade. I see a potential pullback next week that could provide a buying opportunity.* We have elections coming up, Black Friday and the holiday shopping season, so there are plenty of tradable events coming, so let’s discuss!

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com. And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest! Don’t forget to like, subscribe and leave us a comment!

You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!

P.S. This Political Shift Is Set to Cause a Massive Move in the Markets

The Republican takeover of Congress is about to cause a MASSIVE shift in a $54-trillion market…  

And I’m sounding the alarm because I believe every trader MUST know this before the upcoming midterm elections. 

So listen up because they’re just days away…

An electoral red wave is about to wash over America, and the Biden agenda could be toast.

Here’s How I Plan to Take Advantage

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

WRITTEN BY<br>Jeff Zananiri

WRITTEN BY
Jeff Zananiri

What to read next

99 Problems and a “Pivot” is One

99 Problems and a “Pivot” is One

A friend of mine sent me this chart about three months ago. I should probably print it and keep it in my wallet next to a photo of my daughter. Given the sheer number of questions I’ve fielded lately, I’ll probably end up showing this chart more than her picture.

read more
Everything Everywhere, Going Down, All At Once

Everything Everywhere, Going Down, All At Once

When our momentum reading went negative last week, I didn’t know that we’d have the second largest bank failure in U.S. history three days later. All I knew was that it went negative… and that we got out of the way.

read more
Trust But Verify…

Trust But Verify…

I want to talk about our version of “Trust but Verify” in the markets. Qualification is the most important part of the investing process. And this F score value strategy looks to be crushing the current market.

read more

Have any questions? Contact Our Customer Service Team