Before we get to it, I have a special announcement to make…
My guy Lance Ippolito and I are hosting a special premarket event every Monday starting next week!
We’ll chat for a half-hour, from 9 to 9:30 a.m. EDT, just before the opening bell. And we’ll discuss big, market-moving announcements coming, our predictions, key levels and trade setups to watch for that week.
We’ll also do some live trading, maybe talk sports and, I’m sure, get up to some shenanigans and have some fun!
So bookmark this link and Crush the Open with us every Monday: https://special.wealthpress.com/crush!
Now, on to today’s analysis…
The market is getting battered Friday morning on exactly what I wrote about Monday in my weekly look ahead…
A strong jobs report saw unemployment fall from 3.7% to 3.5%. Why is that bad news for stocks?
Because it gives a Federal Reserve already hellbent on taking a wrecking ball to the stock market more ammo to keep raising interest rates. About a week ago, it was 50-50 between a 50-basis-point hike and a 75-point hike…
Now, according to the CME FedWatch Tool, we’re at about an 80% chance of a 0.75% hike at the Fed’s next meeting on Nov. 2…
Had we gotten weaker jobs data, it could have meant a smaller rate hike, which would have sent stocks shooting higher on hopes the Fed would curtail its hiking. Instead, we got stronger data, and the three major indexes all tanked. The Dow was down 1.9% while the S&P 500 and Nasdaq were down 2% and 2.8%, respectively, by lunchtime on the East Coast.
No bueno…
The Fed wants people out of work… it wants “pain,” which is a word Chair Jerome Powell keeps using. Also no bueno…
The problem is this jobs number is a lagging indicator. And these interest rate hikes, one after another, will take four and five months to work through the economy. So the chances the Fed overshoots on rates is super, super high, which is why you’re seeing carnage again in the stock market.
So while we’re trying to find a bottom in the pain train, where’s the “easy,” low-hanging fruit? Check out my video and we’ll discuss where the best opportunities appear to lie.
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 in real time throughout the week, articles, videos and more!
P.S. Why the Housing Crisis Should Terrify You
If the housing crisis interests you — and it should — take a look at this…
“Affordability” is the common struggle among many Americans right now.
Not only are the younger generations unable to afford a downpayment on a house, but they can’t even afford the sky-high rental costs…
It’s no wonder people feel hopeless… Mortgage rates are at highs not seen since 2000!
The housing crisis is so bad that havoc is taking over local communities, and even people like yourself are being forced out of their “forever” homes…
And unless you have a net worth of $30 million to invest with the bigwigs who are buying up all the rental companies… terror could soon be coming your way…
