High Inflation and a Hawkish Fed

Dear Traders,

Happy inflation number day! Inflation did not ease as expected in August 2022, with an 8.3% rise showing that the squeeze on consumers remains persistent even when gas prices fell. The market is falling apart as I am writing this newsletter, with the tech sector’s QQQ dropping over 4% and SPY over 3%. The Federal Reserve will be even more hawkish hunting down investors and consumers. These days are scary times.

Although Wall Street is a nightmare for investors, trading-wise, everything is volatile enough to let us make amazing trades. Today, I did some very nice trading at the Open but lost everything by overtrading. It was just one of those days. I blame myself for not walking away. You can watch my recap here.

Also, please RSVP here for both our Toronto meetup and the MoneyShow. Peter and I will be there, and since the economy is in a recession, we decided that instead of a hotel room, we will be sharing an Airbnb. Peter and I sharing a bed is our contribution to cooling inflation and reducing spending! LOL!

Many ask: What does hawkish and dovish mean when it comes to the Federal Reserve’s policies? Do take a look at the image below.

The Federal Reserve will be on the move for another aggressive rate hike. They are hawkish, hunting investors and consumers. Their message is clear: STOP SPENDING people! You might argue that the current inflation is mostly because of the supply chains in China or the war in Eastern Europe or high gas prices, but it does not really matter why there is so much pressure on the economy. If bringing inflation back down to 2% requires US households to experience a depression, the Federal Reserve is ready to inflict it. They are already damaging the real estate and construction sectors, and it will trickle down to many other sectors. Canada lost job openings for the first time in a long time.

The message has never been more clear from the US central bank: both businesses and households should expect severe pain.

For Tuesday Strategy, Thor will be leading a presentation entitled: Volume Price Action: The Where. One of the first steps to trading successfully is figuring out “where” to find a trading opportunity. In this webinar, Thor will discuss just that. Using volume- and price-based criteria, Thor will focus on how exactly you can find specific stocks that would be expected to perform well. He will then review how to isolate specific ranges within each stock’s price “where” you can then look for potential trades to set up. Thor’s webinar begins at 8pm ET.

Over at our Peak Capital Trading boot camp, last night Mike led a webinar entitled: Personalize Your Performance Profile & Goal Setting. Tonight, at 6pm ET, Mike will be following up on this webinar by discussing how to put your performance profile to work for you. On Wednesday, at 11am ET, Aiman and Megan will be focusing in on how best to get started with Peak Capital Trading.

Don’t forget to RSVP for our Toronto meetup! Again, here is the link.

To your success,
Andrew