Category Archives: Hot Stocks

Look for Sideways to Down Trading Next Week

The market survived a few major challenges to its upward momentum last week.  The market reacted positively to the Fed July meeting rate hike decision and all the mega tech earnings reports!  This market reaction didn’t sit well with the Fed.  On Sunday, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS’ “Face the Nation” that inflation poses a larger threat

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The May 20 Low Was Tested Last Week

Following the post June Fed meeting tantrum, the market rallied to jump over the May 20 low in the week after.  But last week the market encountered a selloff that tried to reverse the post June Fed meeting relief rally.  The bears almost won the battle to cause another leg down, but it failed due to the bulls emerging in the late Friday afternoon trading.  The

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The Cost of Money and Why the Fed Fails Frequently

Even though the United States is a capitalist system with a free market where asset price discovery is conducted orderly, but the cost of money is decreed by the Fed.  The cost of money fluctuates depending on the Fed’s policy.  If the Fed is easing, the cost of money is low.  If the Fed is tightening, the cost of money is high. 

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Everyone Is Looking for That Panic Flush In The Market

Last week major retailers such as Walmart and Target released bad earnings for Q1 and weak forecast for Q2 2022.  Rightfully both stocks were punished severely along with the entire the market. All three indices made a new low last Friday, but the market was able to crawl back to close above their perspective

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Selling Exhaustion Created A Temporary Low

Fed Chair Powell made statements last Thursday about two more 50-basis point rate hikes, one in June and one in July with the possibility of a hard landing, meaning the economy might tip into recession later on.  The S&P 500 fell to 3858 as Chair Powell was speaking.  3858 was just above our target of 3815,

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