Risk-Off And Great Fed Shift

By Monica Kingsley of MonicaKingsley.co

Trader & Market Analyst • Feb 12, 2025 at 10:00 AM EST

Powell‘s day two of testimony will confirm how little in terms of rate cuts we can expect 2025.

S&P 500 narrow range day, and under the hood positive SMCI earnings impact – S&P 500 remains in my 6,060s to 6,115 range pre-CPI, with one level in between emerging as respectable, and it‘s 6,088 Tuesday and Wednesday.

However, CPI and core CPI came in even hotter than I expected (check the video I am linking to, I did expect a modicum of hotness, calling inflation as having bottomed early autumn 2024), today will be a risk-off day and I am not looking for bounces to stick today, really not. New targets and levels given to clients.

Fed rate cuts are even farther, and Powell will confirm it. The Mag 7 and breadth would not save S&P 500 today – even good earnings of late will be sold into, and you know what I thought about TSLA yesterday and premarket.

Examine also the gold and oil calls, how they had been panning out yesterday and today. Risk-off is ahead, and it‘s a day for defensives, and Bitcoin with crypto plays will get hurt, and Powell‘s day two of testimony will confirm how little in terms of rate cuts we can expect 2025.

S&P 500 and Nasdaq

More By This Author:

That S&P 500 Wedge
How To Trap The Bears
S&P 500 Way Too Complacent

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Disclaimer: All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.

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