If Yesterday was All About the Fed, What is Today All About?

Reality

With the Fed raising rates, the focus on the next CPI number, this market has become headline driven. Yet the reality is that the economy continues to slow fueled by a lack of money, US dollars in the economic system to fuel growth and expansion. Like I said, in a short video that I did a day ago or was it two days ago, if you want to know how to invest/trade this market, keep an eye on the flow of money.

Chairman Powell just raised the federal funds rate by 25 basis points yesterday. We will not see the effects of this for another 6 to 9 months. Since March 2022 he has continuously raised the federal funds rate towards upwards of 5%. Not all of these interest rate hikes have filtered in to our daily lives yet. They soon will.

Today the futures are up this morning. But they were also up yesterday.

Chairman Powell and Janet Yellen’s comments yesterday where contradictory to each other. They do not instill confidence into Wall Street, nor the American household.

Tesla

That doesn’t help #TSLA’s cause

Credit Swiss default swaps (basically an insurance policy) went up in a hurry. Not a good sign for banks. Plus, the Swiss Central Bank raise rates 50 basis points.

Have a great day. Be careful out there.

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