Hey, Ross here:
As expected, the Fed held interest rates steady yesterday.
But in the post-meeting press conference, the more Powell spoke, the more indexes slid. Par for the course for a lot of the stuff that comes out of his mouth.
And that’s just not something I’m saying because I don’t like the guy – check out the Chart of the Day for proof.
Chart of the Day
This chart shows the intraday movement of the S&P 500 on the days the Fed releases its monetary policy decision.
The gray area is when Powell’s press conference starts.
As you can see from the blue line – which represents the average of how the market moved in the past eight meetings…
Yesterday’s market decline as Powell spoke really was on par with the average.
The more this man speaks, the more markets fall.
But as I explain in the Insight of the Day – this can actually be good news for us.
Insight of the Day
Don’t put too much weight on how markets react the day of the Fed meeting.
After the Fed meeting on Feb 1 this year, markets rose.
After the Fed meeting on March 22, markets rose.
And the same thing happened after the Fed meeting on May 3 and June 14.
Now, it’s true that markets pulled back after the July 26 meeting.
But what I want to highlight here is that just because the market dips thanks to Powell’s loose lips on the day of the Fed meeting…
Doesn’t mean the market can’t surge right after.
My breakout strategies have pointed out high double-digit and even triple-digit gains after almost every Fed meeting this year…
And I believe they could still do the same.
But the best time to position yourself is when everybody else is still feeling “gloomy” from Powell’s press conference…
That’s how you reap maximum gains.
Because it’s time to make some money from “Prattling Powell”.
Embrace the surge,
Editor, Stock Surge Daily