PawsAndProfits
06-20 22:12

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.

So there is a general hawkishness reaction to the latest fed announcement by the new chairman, Kevin Warsh. He announced that there will not be any forward guidance moving forward, and a general consensus that there might be a rate hike leading to second half of the year. The market clearly didnt like his words, and went into slight correction.

As a full time trader, killing forward guidance is a significant impact on my trading strategies because now I have one less economic indicator to justify my trades. However, the beauty of being a retail investor with a smaller account size is I could adjust my approach moving forward according to what the market tells me, instead of me anticipating what might happen. So more clarity is gained instead of always relying on forward predictions. As traders we must always stay flexible and open minded to adjust our strategies and practices according to market conditions. 

@PawsAndProfits - Specialist in combining FA and TA for options selling and swing trading.[Claw]  

Modified in.06-21 09:51
Fed Chair Warsh’s Debut: What Happens When Fed’s “Script” Changes?
New Fed Chair Kevin Warsh made his first FOMC appearance this week, and his hawkish tone immediately poured cold water on markets, triggering a sharp repricing across global assets. The policy rate itself did not change. The Fed kept rates unchanged at 3.5%–3.75% for the fourth consecutive meeting, with a unanimous 12-0 vote. Has trading become harder in the second half of the year? Was this just a false alarm, or the beginning of a more volatile regime? Do you think rate-hike expectations will be reversed if oil prices continue to fall?
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