Hey, Ross here:
In yesterday’s newsletter, I told you that, under Powell, the market has tended to fall significantly on “Fed Days”.
That’s exactly what happened – even though the Fed cut rates as expected.
Let’s take a look.
Chart of the Day
This is how the market reacted starting the moment Powell started flapping his lips.
He said the Fed doesn’t need to be quick to act anymore as they’ve already cut rates by 1% – and they can therefore be “more cautious” as they consider further adjustments.
This wasn’t what investors wanted to hear, and indexes plunged in the worst selloff since August 5.
The Volatility Index (VIX) also spiked by the most since that day.
But, let’s remember what happened after the panic of August 5.
The VIX calmed down in days…
And the market staged a sharp “V-shaped” recovery.
Is it guaranteed the market will stage a similar recovery this time around?
You already know there’s no such guarantee.
But I think the odds still look good.
The big lesson in all this? I explain below.
Insight of the Day
Never forget the market trades on expectations – not current conditions.
If you’ve been reading this newsletter for a while, then you know I’ve said this quite a few times before.
But after yesterday, it’s worth repeating.
The Fed cut rates – something that’s positive for the markets…
But they threw cold water on the expectations for rate cuts next year…
Which is why we saw what we saw yesterday.
That’s why the better we can gauge expectations, the better traders we’ll be.
And that’s also why tomorrow morning at 11 a.m. Eastern…
I’m going LIVE for a masterclass on my top strategy for exploiting market expectations.
This strategy has never had a losing year – even in the 2022 bear market…
And it’s built up a compounded return of over 1,500% since inception.
I’m talking of course about my strategy for following the trades of the corporate insiders – high-ranking executives exploiting an SEC loophole to trade their own company stock.
They’re the best gauge of expectations because they can actively shape them.
That’s why they have such a huge advantage in the markets – with many of them even beating Wall Street’s finest.
With the market in a pullback, now is the time to position yourself alongside the top insiders at better prices.
So click here to save your seat for my LIVE insider masterclass tomorrow…
Where I’ll show you:
- Where to find the complete record of all these insider trades…
- The warning signs you must know when following the insiders…
- The 3 most powerful – yet counterintuitive – insider buying signals there are.
The masterclass itself will give you everything you need to start effectively using this strategy for yourself.
Let’s exploit this pullback together.
See you at 11 a.m. ET tomorrow.
Customer Story of the Day
“Ross is an excellent teacher. I have watched three zoom meetings being new to trading and am really impressed.
I have stage 4 kidney cancer which God is fighting for me while I’m learning from Ross on how to make good investments. Thankful that his research includes a wide scope of companies”
Ross Givens
Editor, Stock Surge Daily
