Why the Market Fell After the Rate Cut
Hey, Ross here!
When the Fed cuts rates while the S&P 500 is at or near all-time highs, history shows a clear pattern: the index tends to be up 9.8% a year later. But in the short term, it’s a different story. One month after the cut, the median return is negative, especially when factoring in September’s seasonal trends. Don’t be surprised if the market dips in the near term, but the longer-term outlook remains bullish. Here’s why I believe the market will keep climbing in the months ahead.
Half the Market Will be Caught by Surprise
Hey, Ross here! In just a few hours, the Fed will announce its rate cut, and the market is split on how much it’ll be. Volatility is almost guaranteed, and while many traders will be caught off guard, this creates a perfect opportunity for us. At 3 p.m. ET today, I’m going live with a masterclass to show you how to use insider trading data to spot high-potential stocks during this spike in volatility. I’ll break down the exact strategy that’s delivered over 1,900% returns – don’t miss it! Click here to secure your spot.
The Dangers of “Headline-Making” Stocks
Hey, Ross here! Today, I want to highlight a critical lesson about the dangers of fixating on the “headline-making” stocks—specifically, the Magnificent Seven. While these stocks may grab attention, they’ve significantly underperformed compared to the rest of the S&P 500 since July’s market peak. Don’t let their flashy headlines fool you; we remain in a bull market. Join me at 11 a.m. ET for a masterclass where I’ll reveal how to harness insider buying activity to navigate this market effectively. You won’t want to miss it!
This Tells Me Where the Market is Headed Next
Last week, we saw one of the strongest market moves following one of the weakest. Now, the big question is: where’s the market headed next? Wednesday’s CPI report gave us a clue. After an initial selloff, buyers swooped in, sparking a massive reversal by the close. This kind of action, where stocks rally on bad news, points toward higher prices ahead. We’ve seen this pattern before, and if history repeats, we could see stocks surge into the election. Stick around, and I’ll keep you updated on the bull case—it’s still in play.
Will Stocks Fall After the Fed Meeting?
Hey, it’s Ross Givens here with the Chart of the Day. As you may know, September is historically one of the toughest months for the S&P 500. But here’s what’s interesting—it’s usually the second half that’s the weakest. Next week, we’ll see if the Fed can break this pattern. Will they lift the market, or will seasonality prevail? Either way, there’s always good news to uncover, and I dive into that today.
This Critical Support Level is Holding Up
Hey, it’s Ross Givens here with the Chart of the Day. Today’s chart tracks the SMH ETF, which covers semiconductor stocks. The red line shows the 200-day moving average, a key indicator of long-term support. Over the past year, semis have tested this support three times, and each time it’s held strong – including earlier this week. With semiconductors leading the AI rally, this is a great sign for the market’s overall health. But remember, leadership can always shift without derailing the bull market.
How Many Rate Cuts are Already Priced In?
Hey, it’s Ross Givens here with the Chart of the Day. There’s currently $6.3 trillion sitting on the sidelines in money market funds – the highest we’ve seen in months. With risk appetite fading, it’s no surprise this pile of cash is growing. But here’s the key: when the Fed begins cutting rates and risk appetite returns, this cash could flood back into the markets fast. This surge could catch many off guard, but not those paying attention. Don’t be one of the surprised – be prepared.
$6.3 Trillion in Dry Powder on the Sidelines
Hey, it’s Ross Givens here with the Chart of the Day. There’s currently $6.3 trillion sitting on the sidelines in money market funds – the highest we’ve seen in months. With risk appetite fading, it’s no surprise this pile of cash is growing. But here’s the key: when the Fed begins cutting rates and risk appetite returns, this cash could flood back into the markets fast. This surge could catch many off guard, but not those paying attention. Don’t be one of the surprised – be prepared.
Critical Price Level I’m Watching in This Selloff
Hey, it’s Ross Givens here with the Chart of the Day. By adding a volume profile to the S&P 500 chart, we get a clearer view of key trading levels. The 545 and 530 zones have seen high-volume activity, acting as magnets for price movement. But it’s the low-volume 538 level I’m watching closely. Historically, levels like this get rejected or blown through quickly. If we don’t see a bounce next week, the selloff could continue. Even so, there are still opportunities in individual stocks if your trading edge holds up in a negative momentum environment.
Pockets of Strength (And a Critical Trading Lesson)
Hey, it’s Ross Givens here with the Chart of the Day. Today’s chart shows XLF, the ETF tracking a basket of financial stocks. It’s been on a tear recently, surging well past its mid-July highs as the market anticipates the Fed’s upcoming rate cuts. This is just one example of the pockets of strength I’ve been talking about—and there are plenty more if you know where to look. The sharp rise in financials also highlights a crucial trading lesson, which I explain in today’s Insight of the Day.
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