What The Fed’s Decision Means for Traders

[] thoughts on the rate cut, inflation, and market reaction [] [] [] [] Well, the big day came and went — and now we’re left to digest the Fed’s decision. As around half the market expected, we got a 50 basis point rate cut. Now I’ve got a few thoughts on this move that I want to break down for you. To start, as you probably know if you've been following me for a while, I don’t think the Fed should’ve cut rates at all. There’s still too much inflation— even by the Fed’s own target rate of 2% — and while the market might want rates closer to zero, I don’t see us getting back to that level. Inflation has been rising steadily for years — and even though it’s slowed a bit, prices certainly aren’t dropping. Go to the grocery store or try to buy a car, and you’ll see prices still sitting sky-high. The Market Reaction Now, what’s really interesting is how the market reacted. Gold, for example, saw some wild swings. When the rate cut news hit, gold shot up to around $2,627, then tanked down to $2,570 before bouncing right back to $2,610. It was like hitting the reset button. That kind of volatility is why I always stress the importance of staying nimble — markets love to shake things up after big news like this. And here’s something that doesn’t quite add up. Bond prices actually fell after the rate cut, which typically would mean interest rates are going up, not down. It’s a bit of a head-scratcher, but it tells me that despite what the Fed is doing, the market isn’t entirely on board with their strategy. So where do we go from here? Well, in the short term, it’s looking like the markets are holding up pretty well. We saw the S&P futures touch new highs, and if they can push above 5,781 after tomorrow's contract rollover, we could see another leg higher. But make no mistake — this isn’t the time to get complacent. The Fed’s decision may have calmed some nerves, but inflation and other economic pressures are still very much in play. Stay sharp, and let’s see how this unfolds over the next few days. — Geof Smith P.S. We haven’t a surge in nuclear this strong in ages… And there’s [one clear way to play it that I’m sharing here.]( [] [] Well, the big day came and went — and now we’re left to digest the Fed’s decision. As around half the market expected, we got a 50 basis point rate cut. Now I’ve got a few thoughts on this move that I want to break down for you. To start, as you probably know if you've been following me for a while, I don’t think the Fed should’ve cut rates at all. There’s still too much inflation— even by the Fed’s own target rate of 2% — and while the market might want rates closer to zero, I don’t see us getting back to that level. Inflation has been rising steadily for years — and even though it’s slowed a bit, prices certainly aren’t dropping. Go to the grocery store or try to buy a car, and you’ll see prices still sitting sky-high. The Market Reaction Now, what’s really interesting is how the market reacted. Gold, for example, saw some wild swings. When the rate cut news hit, gold shot up to around $2,627, then tanked down to $2,570 before bouncing right back to $2,610. It was like hitting the reset button. That kind of volatility is why I always stress the importance of staying nimble — markets love to shake things up after big news like this. And here’s something that doesn’t quite add up. Bond prices actually fell after the rate cut, which typically would mean interest rates are going up, not down. It’s a bit of a head-scratcher, but it tells me that despite what the Fed is doing, the market isn’t entirely on board with their strategy. So where do we go from here? Well, in the short term, it’s looking like the markets are holding up pretty well. We saw the S&P futures touch new highs, and if they can push above 5,781 after tomorrow's contract rollover, we could see another leg higher. But make no mistake — this isn’t the time to get complacent. The Fed’s decision may have calmed some nerves, but inflation and other economic pressures are still very much in play. Stay sharp, and let’s see how this unfolds over the next few days. — Geof Smith P.S. We haven’t a surge in nuclear this strong in ages… And there’s [one clear way to play it that I’m sharing here.]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](