Market After The Close - Wednesday 31 January

A Surprisingly Gentle FOMC Reaction.

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Look Closely At The Video Of The Powell Speech

If you zoom in and wear your finest reading spectacles you will see the moment a lackey runs into the room to remind Chairman Powell that merely a hint of a rate cut in March will send stonks To Da Moon. At one point today even $AMD was almost green after being down several points after yesterday's lackluster Q4 print. Powell was dragged back on track and duly delivered the message of being data-driven, etc, and even trotted out the Golden Rate of 2% inflation. If you caught Yimin's Fed-inar yesterday you will know precisely how much econometric science lies behind that 2% inflation target. (If you missed it? Here's the recording).

Equities sold off into the close today although long-dated bonds did the opposite, with $TLT and $TMF climbing into and beyond the close, as you will see from the 10-year yield, which dived today.

Personally I sold out of and banked gains in both UVXY (long volatility) and UCO (long oil) today to take advantage of the elevated tension in equities and geopolitics respectively. Both these trade ideas were published in the Trading Gains channel we host - you can learn more about that, here.

I also added to holdings in SOXL, and opened new positions in UDOW and TMF.

OK. Now onto our usual charts. Paying members of Inner Circle, scroll down for our long- and short-term take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000 - including the regular ETFs, the futures, the 3x leveraged ETFs and then finishing with a take on sector ETFs in semiconductor, tech, and the Fangs.

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Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.