FED CHANGES ITS TUNE – RETIRES ‘NOT THINKING ABOUT THINKING’

To gain an edge, this is what you need to know now.

Fed Changes Tune

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

• We have been very critical of the Fed’s intransigence of not facing the hard economic data that we have been sharing with you.
• Now the Fed is changing its tune and moving to what we have been saying, a few months late but it is better to be late than never.
• We are commending the Fed for giving up the intransigence but still, the Fed plans to move much slower than what is warranted by the data.
• Here are the key points from the Fed’s statement and Powell’s press conference.
  • Powell thinks ‘not talking about talking’ (previously it was ‘not thinking about thinking’)  should be retired.
  • The Fed acknowledges that the economy is strong.
  • The Fed acknowledges that incomes are high.
  • The Fed acknowledges that progress will continue.
  • The Fed acknowledges that prices are rising rapidly.
  • The Fed expects inflation to go down.
  • The Fed will provide advanced notice before announcing any decision to reduce bond purchases.
  • Now dot plot indicates that a rate increase next year is likely.  Previously the dot plot was at 2023.
• The chart shows when the Fed’s statement was released.
• The chart shows the market fell as the momo crowd was expecting no change in the Fed’s policy.
• The chart shows the momo crowd is aggressively buying the dip.
• The VUD indicator is the most sensitive measure of net supply demand in real-time. The orange represents net supply and the green represents net demand.
• As of this writing, the VUD indicator has turned green on aggressive momo buying.

Money Flows

The momo crowd money flows since the Morning Capsule are 🔒 (To see the locked content, please take a 30 day free trial).

Smart money flows since the Morning Capsule are 🔒.

Short squeeze money flows are 🔒.

A Special Note To New Subscribers

Note the smart money behavior.  Smart money tends to sell into strength on strong up days.

New subscribers should consider adopting smart money’s  way of investing and trading.

Sentiment

Sentiment is 🔒.

Sentiment is a contrary indicator at extremes.  In plain English, this means that when sentiment becomes extremely positive it is time to sell and when sentiment becomes extremely negative it is time to buy.

Gold

The momo crowd money flows in gold are 🔒 since the Morning Capsule.

Smart money flows are 🔒 in gold since the Morning Capsule.

Oil

The momo crowd money flows in oil are 🔒 since the Morning Capsule.

Smart money flows in oil are 🔒 since the Morning Capsule.