Powell needs to stand strong

Or will he crumble under the pressure?

______________________________________________________ Tuesday, September 17th ______________________________________________________ “Be sure to put your feet in the right place, then stand firm.”  - Abraham Lincoln ______________________________________________________ Tomorrow the Fed will reveal their plan for rate cuts. Even as you read this, the Fed board is deliberating in secret. Will they raise rates? Cut them? Keep them neutral?  The majority consensus is that they are going to cut. The question in most people’s mind is not if, but by how much. 25 basis points? Or 50?  But hardly anyone is saying that the Fed won’t cut at all. But I’m going to go out on a limb and say that the Fed will not cut at all tomorrow. Now, I’m aware that this is a contrarian position. I’m also aware that I’ve already written extensively about my position. But, an extreme viewpoint requires an extreme amount of support.  So, let’s look at why I believe this. First off, the retail data that was released today.    Retail sales are up. That’s not what happens in a recession.  Industrial production is also up:   Which also is not what happens in a recession.  And of course, we have CPI and PPI, the two most important inflation numbers that are also both still rising. PPI (Producer-measure inflation) is actually accelerating.  So, why would Powell cut? If he cuts, inflation is likely to reaccelerate, and Powell’s legitimacy will tank. He will be a laughingstock of the world. Because not only will he have failed the inflation mission, he will also be seen as a partisan hack who cut interest rates right before an election.  The letter from Elizabeth Warren and Co., where they begged for a 75 bps cut put Powell into a corner. If he cuts, it will appear to be a blatant political move to benefit the Left. Powell wants to leave a legacy. And all of this combined leads me to believe we will not see rate cuts.  LEVELS: Onto the levels I’m eyeing for the week. This week will require us to be nimble due to the Fed decision tomorrow. Everything could change in a moment. But for now, here’s what I’m eyeing: ON  Multiple bounces off a $66.95 support line. If the past two bounces are any indication, price could hit $78. Currently $76.  Amazon If price breaks above $188, we could see a nice little run up.  Nvidia  Eyeing a $130 price target by end of month.  Tomorrow, I will be hosting a livestream before the Fed meeting. And showing one of my top strategies for trading the volatility that will soar after the Fed makes their decision. If you want to sign up for that, click here. To Better Trading, Alex Reid Wealthpin   WealthPin

______________________________________________________ Tuesday, September 17th ______________________________________________________ “Be sure to put your feet in the right place, then stand firm.”    - Abraham Lincoln ______________________________________________________ Tomorrow the Fed will reveal their plan for rate cuts. Even as you read this, the Fed board is deliberating in secret. Will they raise rates? Cut them? Keep them neutral?    The majority consensus is that they are going to cut. The question in most people’s mind is not if, but by how much. 25 basis points? Or 50?    But hardly anyone is saying that the Fed won’t cut at all. But I’m going to go out on a limb and say that the Fed will not cut at all tomorrow. Now, I’m aware that this is a contrarian position. I’m also aware that I’ve already written extensively about my position. But, an extreme viewpoint requires an extreme amount of support.    So, let’s look at why I believe this. First off, the retail data that was released today.    Retail sales are up. That’s not what happens in a recession.    Industrial production is also up:   Which also is not what happens in a recession.    And of course, we have CPI and PPI, the two most important inflation numbers that are also both still rising. PPI (Producer-measure inflation) is actually accelerating.    So, why would Powell cut? If he cuts, inflation is likely to reaccelerate, and Powell’s legitimacy will tank. He will be a laughingstock of the world. Because not only will he have failed the inflation mission, he will also be seen as a partisan hack who cut interest rates right before an election.    The letter from Elizabeth Warren and Co., where they begged for a 75 bps cut put Powell into a corner. If he cuts, it will appear to be a blatant political move to benefit the Left.   Powell wants to leave a legacy. And all of this combined leads me to believe we will not see rate cuts.    LEVELS:   Onto the levels I’m eyeing for the week. This week will require us to be nimble due to the Fed decision tomorrow. Everything could change in a moment. But for now, here’s what I’m eyeing:   ON    Multiple bounces off a $66.95 support line. If the past two bounces are any indication, price could hit $78. Currently $76.    Amazon   If price breaks above $188, we could see a nice little run up.    Nvidia    Eyeing a $130 price target by end of month.    Tomorrow, I will be hosting a livestream before the Fed meeting. And showing one of my top strategies for trading the volatility that will soar after the Fed makes their decision. If you want to sign up for that, click here. To Better Trading,   Alex Reid Wealthpin WealthPin

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A Wealthpin Publication   ABOUT US: Wealthpin is a publishing and education company. We believe that the best manager of your money is YOU and we want to give you great research to help you do that. Our goal is to uncover cutting-edge investment ideas and share them with you in a way that’s clear and useful.  Our  investment research is typically focused on undervalued stocks, high dividends and major growth potential.   DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpin  are for your informational purposes only. Neither Wealthpin  nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.   DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpin is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://wealthpin.com/terms-of-use/ for our full Terms and Conditions.   Unsubscribe This email was sent to edwardlorilla1986.paxforex@blogger.com by Wealthpin 101 Marketside Ave, STE 404, PMB 318 | Ponte Vedra | FL | 32081 WealthPin