[Altos Weekly Traders Edge] Rate Cut Impacts for 2023..Details Inside

Sponsor Trading around earnings announcements (Pre-Earnings, Into-Earnings, and Post-Earnings) provides a [unique trading opportunity](. And there is a new ebook that will show you quick ways to trade earnings. [Download Your Copy For Free]( Powell Paves the Way for Rate Cuts - Can the Market Continue to Defy Gravity? Weekly Market Overview Hi Traders, With Fed Chair Jerome Powell hinting at several rate cuts in 2024, a sense of optimism has gripped Wall Street. Forget those that have "pullback prediction" – the market seems determined to defy gravity, fueled by expectations of easier monetary policy. Sure, we've seen some minor selloffs here and there, mere blips on the radar amidst the relentless upwards climb. This resilience can be partly attributed to the recent rotation out of tech stocks and into small caps, financials, and industrials. This shift has propelled value indexes like the Dow Jones Industrial Average to lofty heights, with the index flirting with all-time highs. But a word of caution: the Dow's RSI hovers above 85, a territory indicative of extreme overboughtness. Historical context? Think of Mount Everest – 85 is thin air even for major indexes, 70 is the norm, and venturing above 80 is akin to scaling the world's highest peak blindfolded. So, while another one-day wonder correction might grace us this week or between Christmas and New Year's, the current autopilot mode seems firmly engaged, pushing the market upwards most of the time. But beneath this seemingly carefree climb lies a hidden danger – the potential for a 2024 recession. While lags in monetary policy might offer a temporary cushion, Powell's delayed response to the inflation problem could ultimately lead to excessive tightening after his departure. This "over-tightening" scenario is like a tightrope walk without a net – it could choke off the economy and trigger a recession that could have been avoided with more timely action. Ironically, two unlikely things might come to the rescue: the ongoing worker shortage (unemployment near 3.7%) and the low-inventory housing market (a result of near-8% mortgage rates just six weeks ago). With nearly everyone who wants a job having one and spending their hard-earned cash, the wheels of the economy keep spinning. And those low fixed-rate mortgages? They're keeping homeowners firmly rooted in their brick-and-mortar havens, further supporting overall economic activity. Strong home prices, after all, are like sturdy pillars upholding the economic temple. Finally, let's turn our gaze to the horizon, where emerging markets are poised to shine in 2024. Battered by the strong dollar and relentless Fed tightening, these economies are finally catching a break as the tide seems to be turning. As the dollar weakens, expect a dramatic comeback from emerging markets. Remember, these economies often borrow in dollars, so a strong greenback makes their debt burdens heavier. But when the dollar weakens, it's like a weight lifted off their shoulders, paving the way for outperformance. Powell's promise of rate cuts has painted a rosy picture for 2024, but hidden beneath the surface are potential pitfalls. While the worker shortage and low-inventory housing market might offer temporary shields, the threat of "over-tightening" lingers. Meanwhile, emerging markets stand ready to pounce as the dollar loosens its grip. - The Team at Altos Trading In the next article: Gold's record-breaking climb in 2023 hints at a 2024 fueled by anxiety, with dollar weakness, interest rate cuts, and geopolitical woes all likely to keep the haven asset shining. Sponsor [Please take a moment to watch this…]( Some are calling it the greatest trading advancement of the last year… A 34 year old man from central Florida has uncovered a totally new way to trade options… Already this year it’s allowed real people to [capture top returns of 50%...100%... Even 200% overnight…]( Gold's Glimmer: A Beacon for 2024 As 2023 draws to a close, gold's allure shines brighter than ever. Its record-breaking climb, peaking at $2,135 per ounce, speaks volumes about the anxieties simmering beneath the surface of the global economy. This haven asset's meteoric rise tells a compelling story about the year to come. Wall Street's November exuberance masked deeper tremors. Inflation fears subsided, sending stocks skyrocketing and bond yields plummeting. While the party continued, whispers of impending interest rate cuts and a softer dollar piqued investors' interest. But when December arrived, the spotlight shifted dramatically. Stocks faltered, yields inched up, and a wave of uncertainty washed over the markets. Gold, the ultimate safe haven, seized the moment. Unlike bond yields, its value thrives on fear, not optimism. As real yields – adjusted for inflation – fall and the dollar weakens, gold gleams even brighter. November's dollar slump and December's jitters provided the perfect recipe for its dazzling ascent. Geopolitical turbulence adds another layer to the narrative. From the battlefields of Ukraine to the tensions in the Middle East, the world feels fractured and febrile. In such times, gold's tangible, finite nature offers a comforting stability, attracting investors seeking shelter from the storm. Looking ahead, 2024 promises a potentially turbulent ride. Analysts anticipate a softer dollar and interest rate cuts – a tide that could lift the gold boat to even greater heights. Central banks, with their insatiable appetite for the precious metal, are expected to join the buying spree, further fueling the surge. For Canada, a land teeming with gold miners, this glittering outlook isn't without its caveats. The disconnect between gold prices and mining company valuations poses a curious puzzle. While the metal itself might soar, it may not translate directly into miner profits. Ultimately, a veteran economist reminds us that the true driver of gold's ascent is fear, not greed. In 2024, as uncertainties multiply and anxieties rise, gold's allure is likely to remain undimmed. It may not guarantee riches, but its unwavering value will offer a comforting sanctuary in a world teetering on the edge. Sponsor [New Customers earn 5.25% APY* (variable)]( Store your money with Cash Reserve, a high-yield account built for peace of mind. New customers earn 5.25% variable APY*—that’s 13x higher than the national savings rate. ** Plus, your money’s FDIC-insured up to $2M†at our program banks and no limits on withdrawals and transfers. **The national average savings account interest rate is reported by the FDIC (as of 5/15/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. [Sign Up Now!]( Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](