Fed Rate Hikes usually signal that the market will turn bullish as the economy gets stimulated. However, it would be fair to say that this fed rate hike has definitely already been priced in.
With the ongoing trade war and the economy being at its most unsure, bullish sentiments are also being shunt aside due to all the indicators that a recession is coming (i.e. falling demand for lumber, bond yield curve inversion, stellar performances on non-sovereign assets like cryptocurrency and gold). Our safest bet on this is to wait it out.
In the event that the interest rates do drop this coming wednesday, the market will rally, but it will meet the very stubborn resistance price of 2950. The odds of a good return on going long on this index is just not that right.
Then again, this measure taken by the fed is intended to stimulate the economy. It might be drastic (in preparation for even more of the trade war), therefore shorting this position will be more of a longer term hold. Nevertheless, I would short the S&P, with the take profit and stop loss as stated in the chart.
With the ongoing trade war and the economy being at its most unsure, bullish sentiments are also being shunt aside due to all the indicators that a recession is coming (i.e. falling demand for lumber, bond yield curve inversion, stellar performances on non-sovereign assets like cryptocurrency and gold). Our safest bet on this is to wait it out.
In the event that the interest rates do drop this coming wednesday, the market will rally, but it will meet the very stubborn resistance price of 2950. The odds of a good return on going long on this index is just not that right.
Then again, this measure taken by the fed is intended to stimulate the economy. It might be drastic (in preparation for even more of the trade war), therefore shorting this position will be more of a longer term hold. Nevertheless, I would short the S&P, with the take profit and stop loss as stated in the chart.