Is it time for a god pump?
160: 25 BPS send assets flying
Happy Thursday kings and lords.
It would appear we are back
I was reminded how fun it is to trade volatility around major events like Fed meetings and potential short term (or long term) reversals.
Regardless of if this pump is going to last, there is money to be made on some rather predictable events, including further Fed talks and hikes and within sectors that have gotten brutally beat down for some time.
Yesterday was a perfect example.
More on that in a minute.
We’ve seen mass layoffs in tech and finance, the Nasdaq get clobbered, Russia Ukraine FUD reach all time highs, leverage get rinsed out of crypto and some equity markets, and the Fed has been on a consistent rate hiking regimen for some time, cumulating with Jerome Powell’s address yesterday in which he announced a dovish 25 bps hike.
Just this morning the Bank of England raises its benchmark rate by 0.5 points to 4%, the highest since 2008.
It appears at least partially true, that the markets were looking for some news to rip off of. The real question is will we see this trend continue or is it short lived.
If you read our Simple Blueprint for Getting Rich you know that the focus should always be on accumulating MORE assets, not panic selling or day trading to try and make back losses — this will 9/10 lead to underperformance and frustration.
Today we’ll cover a few areas we are starting to buy assets/trade in and what our short term outlooks are.
We’ve mostly been sitting on our hands and doing nothing which we’ve learned is half the battle when things tart to look really bad. Sentiment can only be so terrible for so long.
Even Michael Burry, the infamous Big Short Fund Manager tweeted to sell before the Fed announcement, he has since deleted his Twitter account (something he does frequently).
Today we’ll talk about a few areas we think yall can make money right now and bump up that portfolio before we get more clarity on what might happen in the medium term.
In today’s post we’ll cover our view on:
Momentum Trading Options (Fed Announcement)
The best AI & Tech Plays to get into (in our opinion)
Our Crypto Strategy for 2023 & outlook for short term
Dividend/Growth Portfolio Update (stocks we want to accumulate)
JP Morgan’s 7th Annual Electronic Trading Poll (could be bullish)
If you you’re somebody who is a bit confused or gun shy with your money or portfolio at the moment this should provide some great clarity and guidance on what others (s) are doing and how we are thinking about playing the current environment, factoring in yesterday’s announcement and some of the signs we are beginning to see in the economy, workforce, etc.
We disclose most of our positions as well so you can see how we are approaching the market right now and we’ll cover the responses given by traders that JP Morgan surveyed on emerging technology, market conditions, and market outlooks for 2023.
If y'all are free subs consider joining the thousands of traders, investors, and size lords who subscribe to paid for our deep dives like this 2X a week. It takes us hours upon hours each week to clean, summarize, and source the data and info we bring to Arb Letter so as always we appreciate all of the young size lords who choose to ride with us.
It’s literally less than a Cheeseburger a month in this inflation ridden environment to stay on top of everything that actually matters.
We’re commentating and covering global news events and markets in a way that legacy and traditional media sources simply can’t or won’t and we’ve built up an archive of over 160+ posts, guides, and interviews with loads more content coming this year.
IT’S LOOKING LIKE WE MAY BE BACK BOYS
Let’s talk about what moves can pay off in this market environment where we may have seen a pivot in sentiment.