Fed Responds With Hawkish Tone On Interest Rates

Cast your mind back a week where I referenced my view that certain reactions to the Treasury’s bond buyback announcement appeared overblown.

Now, this week the Fed responded at the Jackson Hole symposium with a more hawkish tone on interest rates in order to subdue inflationary fears.

In summary, the Fed does not appear to feel pressure to lower interest rates. Rather, an increase is starting to be baked in.

What does that mean?

Market Outlook:

A short term pullback in certain sectors is the most likely outcome.

Stocks with debt, or with clients that have debt, will be more vulnerable.

Remember, in four weeks’ time there’s the September FOMC date.

As I mentioned last week, don’t be aggressive with your P1 targets, and be openminded about take the profits when they’re on offer.

Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Green.

• Medium Term Swing Timer:
  Bearish.

• The Main Indices OVIs:
  SPY and DIA are blue, DIA and IWM are red.

Stock Selection:

Today I must have seen around 500 stocks and they were remarkably quick to go through with our outstanding charts and TradeFinders.

What was striking was the number of decent looking bearish plays. As with last week, let’s focus on post earnings, not pre!