A Historic Change is Coming to the Stock Market One of the most important changes in the past decade is happening this week one the market as Jerome Powell’s Fed Chair term ends and Kevin Warsh (if confirmed) takes office. Kevin Warsh is Trump’s nominee to become Fed Chair, which has many divided on whether or not he’ll be acting in favor of Fed independence or not. Trump has historically been vocal about Powell, arguing that he is not leading The Fed well and that he showed lower interest rates to as low as 1%. This exact thing is what has some worried…if Kevin Warsh doesn’t stand ground against Trump, he may lower rates, even when the economy doesn’t warrant...
Sell in May and go away’ is the classic Wall Street saying because the market has historically entered a softer, slower stretch after April. This would usually make sense, but after the month we just witnessed, does it still apply? The answer is a yes, but with a nuance. Rarely do we ever saw Wall Street not “shift” capital elsewhere…so what we’re looking for in May is a pullback in the overextended names and a move in the “dormant” names (we’ve been highlighting these names in our watchlists over the past few weeks). The buildup into other sectors takes time…then the move comes suddenly. The Federal Reserve Shake Up The Federal Open Market Committee (FOMC) held interest rates for the...
Weekly Stock Market Update & SPY Technical Analysis This week marks the end of an era…one that was led by a man named Jerome Powell, who served as the Chair of the Federal Reserve since 2018. Since then, Powell has been the most powerful man in the United States financial system, arguably in the world. The Federal Reserve sets monetary policy, controls interest rates, manages liquidity, and oversees the stability of the financial system. Every major asset class: stocks, bonds, real estate, and even crypto, has been directly influenced by the decisions made under his watch. What Happens When Powell and Kevin Warsh Takes over is Gone: While historically known as an “inflation hawk” (someone who prioritizes high interest rates...
Weekly Stock Market Update & SPY Technical Analysis Death, taxes, and investors buying the dip…those seem to be the three guarantees in life. We witnessed a phenomenal market comeback since the start of April, as if investors left their troubles behind in March and reversed course into the new month. The Fear & Greed Index moved from extreme fear (below 20), to a high reading of greed (62)…all it took was a hint of a peace deal between the U.S. and Iran. Bear Market Bounce vs Actual Recovery: The question on everyone’s mind is whether or not this bounce will hold. To make an informed decision, one has to look at what truly drives markets, interest rates and earnings. Interest...
Weekly Stock Market Update & SPY Technical Analysis The stock market accelerated back towards all time highs following plans of a ceasefire last week, showing us how ready buyers are to take action when the Iran-U.S. conflict ends. However those buyers will be tested this week as ceasefire talks stall and the Strait of Hormuz remains closed. Iran is playing hardball against the demand of the United States. Negotiations between Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf failed to find a solution on the nuclear sticking point, which is really the most important point for the U.S. and Israel…it’s why the U.S. supposedly attacked Iran in the first place…so if there’s no deal on this, the...
