What is the Fed thinking?

By on January 20, 2016

Good morning gals n guys.

Hope you got a great nights sleep since I didn’t. I was up looking at charts until about 430am looking in detail at over 3000 individual stocks.

It’s something I do a few times a month because it just gives me a good overall feel for the market and where things actually are. its most important for me to do it when the markets are acting as they have been the last several weeks.

What I’m seeing under the surface right now is pure ugliness guys. For example, even though the Dow ended up 28 points declining stocks led advancing ones by a better than two to one margin. Even more significant we saw ZERO new highs in the entire market and over 1100 new lows. By day’s end the Russell2000 (small cap index) was down the equivalent of 200 Dow points. We are at 3 year lows in retailers and transportation stocks and seven year lows in emerging markets. This has been a very tough year already for investors and traders: for example Warren Buffet is already down 22%.

In other words, it’s kinda ugly out there. It’s not the end of the world and the sun will come back out again some day – but for the time being it’s just gross.

Another thing – I just have to get this off my chest. The people in charge of the Fed are a bunch of numb nuts idiots! For the last nine years we’ve desperately needed a rate hike, did we get one? Hell no. Now with everything going to hell in a hand basket and underlying technicals, internals and fundamentals looking the worst they’ve looked in 7 or 8 years, now these jack asses decide it’s time to raise rates?

Ok, well, now that you have let me get that off my chest I feel so much better! So thank you!

Now to some serious stuff. We might not technically be in a bear market according to the Jeniuses (yes, with a J!) on TV, any reasonably deep look at the market.

There is really no telling what the market will do at this point. Its incredibly oversold and clearly due for a bounce. We are in a bear phase now though, so that really doesn’t mean too much.

I know that it can be frustrating to people sitting on the sidelines and watching moves go by. It’s easy to convince yourself that you woulda, coulda shoulda had that one. Very easy trap to fall into, but I want to assure you that the ONLY reason I’m still playing this game after almost twenty years, during which time I’ve only had two losing years, is because I know when to sit on my ass and wait.

Moving on to one more thing quickly: Check out www.cityfalcon.com

Quick disclaimer – they are part of our technology incubator Zielix Incubator . But with that in mind even if they were not and I had just randomly come across it I’d be wanting to show it to you.

Feel free to use it and abuse it. If while you’re using it you can think of some features and functions that would make it better please let me know and I’ll get the info to the developers right away.

And finally: I’m wanting to create several videos and educational articles to help you become better traders and more astute investors. If you had to list one major problem you have, something that’s really holding you back, what would that be? Please hit the reply button and let us know. Once I’ve read your responses I promise to address them in one of the videos or articles, which will be available to you for free.

About Brandon Fredrickson

Brandon Fredrickson started trading in the mid 1990's. He has has helped thousands of traders reach their dream of profitable trading since 1998.

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