أشرف العايدي على سي ان بي سي العربية -- 9 يوليو2013
Jul 9, 2013 16:10
Historically, markets rallied as the Fed transitioned from interest rate cuts to a neutral policy stance. The principal reason a central bank pauses from easing is the stabilization of economic growth. As the data transitions from stability to expansion, the central bank reduces stimulus, allowing economic and business green shoots transform into full bloom. And thus, it is no surprise that the S&P500 rise during periods of neutral monetary policy following interest rate cuts.
Sep '92 to Jan '94: S&P500 +15%
Nov '98 to May '99: S&P500 +16%
June '03 to May '04: S&P500 +18%
For tradable ideas in EURUSD, USDJPY, USDCHF, GBPUSD and USDCAD, please click here http://www.ashraflaidi.com/trades/
Before I tell you about the AAOI Trade I shared with the WhatsApp Broadcast Group last week (now up 38% in less than 5 days), just a few quick words about the Fed. Wednesday's rate cut coupled with no hawkish surprises from Powell's conference was a launchpad for USD weakness, metals strength and equities' surge (Dow30 hit new record). Markets can look beyond Oracle's disappointing earnings to eat the dish served by the Powell (lower rates, short term liquidity while inflation isn't completely vanquished). Anytime you hear/see/smell rate cuts during an inflationary environment, the above occurs. Altcoins and Bitcoins are slow to rally, but Bitcoin miners afre flexing their muscle. See below the AAOI Trade I shared with the WBG, whereby we entered at $26 on Friday and now its $36. Meanwhile, Reddit is up 68% since we bought it in July.
Click To Enlarge
Latest Hot-Chart - Nov 24
Updating post 9th
سأرسل رسالة صوتية و كتابية توضيحية لأعضاء مجموعة الواتساب الخاصة حول هذه المخططات - Will send detailed note on latest parameters to our WhatsApp Bdcst Group - -...
View Hot-Chart..
Uncertain December
The oscillating changes in market expectations for the December FOMC meeting implies more volatility into the next 4 weeks.
Read Article..