Market On Open, Thursday 29 January
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Read our full disclaimer, here.
<UNCH>
by Alex King, CEO, Cestrian Capital Research, Inc.
For anyone new to capital markets, I recommend they buy one share of say $QQQ just to make it real, and then sit through the Three Days Of The Condor aka an FOMC Event. In the time before you know anything about FOMC, you think that stock prices are primarily a function of earnings and the rate of earnings growth. When you come of age after those three days you learn to see the Matrix as it really is, which is to say a swirling mess of expectations fighting reality fighting the supply of cash to prime brokerage desks fighting the cost of that cash fighting market-maker headfakery fighting manic depressive human traders fighting algorithmic traders. Earnings lol!
The First Day Of The Condor: the day before FOMC. Trading is irrelevant. Low volume and designed solely to relieve you of money.
The Second Day Of The Condor: FOMC Day. More headfakery in the run-up to the rate being published, then a knee-jerk reaction up or down, then stasis whilst Chairman Powell ‘fesses his soul to the press conference, then a final flurry of activity into the close.
The Third Day Of The Condor: The day after FOMC. By the close we have something akin to price discovery. Today is that day. Today’s close will probably be meaningful. So let’s take a look at the state of the market before the open.
By the way, our new SignalFlow AI Global sees launch pricing ends 31 January so if you are interested, sign up in January to lock in the current low prices for as long as you remain a subscriber. From 1 February, prices double.
You can read all about it here.
Alex King
Next up, our daily market analysis note for our Inner Circle members.
Want our best work? Join us.
Join The Cestrian Inner Circle.
Alex King