Powell Isn't Backing OFF! Higher RATES Ahead!

Hawkish he is

Powell’s words dampened the mood a bit yesterday. SP500 was down -.52% for the day on the Hawkish words as the Chairman spoke about inflation being above the target rate of 2%. More rate hikes in the future until 2% inflation is achieved. This will eventually put enormous pressure on credit and the ability to barrow.

The Yield Curve is once again headed south to -.96. Keep in mind that Silicon Valley Bank went under back in March when the Yield Curve was at -1.070 area.

VIX continues to be suppressed at 13.20. VIX Call options have been heavily bought in the last number of days. This could be some of the culprit for the VIX being so low. Caution needs to be taken. When the VIX rips higher…it could cause a lot of boo-boo’s to equity markets.

Conclusion

Minimize your risk. As much as the headline news wants you to believe that the world is all good and fine, it isn’t. I truly look forward to the day when I can say BUY BUY! That time will come, but today, just be patient and aware of flow of the market.

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QQQTrades Ideas

These stocks are Trades. I am looking to minimize downside and capitalize on the upside. 21 Day EMA is my tool of choice coupled with Slow Stochastics and SCTR rating. I do use the Pivot Points indicator, but have found that the 2 Day EMA often match’s up with the Pivot Point indicator. Price Entry Area is not exact. I use that as a target but adjust based on the conditions. Be Patient.

Intermediate -Term Portfolio Idea

Buy and rotate strategy base on MACRO Economic conditions.