Do Not Fight the Fed

Dear Traders,

The market rallied at the Open and we took some amazing trades on TSLA and TQQQ with Brian. You can watch our recap here. It was a big move! The market is red, and only the Energy sector is strong today. Brian’s natural gas and uranium trades are doing well for him.

It was a frantic Friday in the markets — where QQQ dropped 4%, SPY 3%, and so on. The annual Jackson Hole meeting in Wyoming is where the world’s leading economic minds gather to discuss policy, the economy, and their overall frameworks for approaching their jobs. Everyone expected that this past week’s meeting would throw the markets an interesting curveball, and it certainly did. Federal Reserve Chairman Jerome Powell stated, “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.” Further to that, Powell said nothing new; hejust used stronger and more direct language than in the past.

The Federal Reserve has been saying that it will be data-dependent and continue tightening until long-run inflation moves meaningfully back toward its 2% target. It already met its employment mandate; the labor market is strong and tight, and so bringing down inflation is its only focus.

Tonight, for our Monday Onboarding and Technology session, Carlos and Mike will walk you through the tools needed to start your trading career and introduce you to both our philosophy of education and our suggested path to success, with the end goal being that you will be able to build your own winning TradeBook for the stock market. All members, and in particular our new members, are most welcome – and very much encouraged – to join us on Monday nights commencing at 8pm ET.

Tomorrow, for Tuesday Strategy, Mike will be leading a webinar entitled: How to Find a Trading Strategy for You. As summer slowly starts to wrap up, it’s a perfect time to be honest with yourself. If your equity curve is not sloping upward, then you probably do not have a strategy that is meeting your trading goals. The question accordingly becomes: Given the multitude of strategies out there, how do you find the one that works best for you? In this webinar, which starts at 8pm ET, Mike will discuss the process that helped him identify the strategy that most complemented his trading goals.

I am off to Burning Man this week, and will most likely miss trading on Wednesday, Thursday, and Friday. If you are at Burning Man, I would love to see you in the dust. I am camping at 5:15 and G in Atlas Camp. Above is a picture of Brian and I at Burning Man 2019.

See you in the dust!
Andrew