TG Watkins – Don’t fight The Fed, Powell Has Told Us They Want To Break Inflation Which Carries Over To The Markets
TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website joins us to share his outlook for the markets. We start by recapping the recent bounce and key levels to watch.
TG then steps away from just focusing on the charts to reiterate Jerome Powell’s comments at the last FOMC meeting. In summary, Powell said they want to break inflation (which also could mean the markets) before it becomes entrenched in everyone minds. As much as everyone is hoping for a Fed pivot, or at least a pause, that might be farther off then early next year.
Yep, the greenback was up, and most everything else was down again…. So goes the market teeter-totter.
The public is waking up to the inflation numbers, the big unions are looking for wage increases although they won’t be able to keep up with inflation. A contract that provides for 4% might be doable but forget about 16%, this is what the real inflation numbers are. This is where the rubber meets the road. DT
Government workers are all unionized, look for the Government to come out with wage and price controls. The snowball is becoming an avalanche. DT
Another good article by Mr Piepenburg @ King World News. Moved to second up.
Look for Santacruz Silver to report their 3rd quarter financial results this week. It should be interesting! Pop A Top! DT
This is pretty amazing, Lundin Gold (TSX- LUG) reports high grade gold at Fruta del Norte in Ecuador, including 12.57 G/T Au over 101.30 meters, and 10.76 G/T Au over 163.2 meters. DT
Crypto falling knife becoming a blood bath? Thx to FTX, Dems had all kinds of money to fund midterm campaigns. Big guy Joe may have pardoned turkeys, but every day is looking more & more like (Teflon Don) John Gotti
Wow, yeah the crypto crash is still in motion, with Bitcoin having dipped earlier to $15,460. Now it’s recovered a little bit to $15,681, but it’s interesting to see it with a $15k handle.
Ethereum is back down testing that summer low area around $1067 from June again, and if that doesn’t hold, it could really take a plunge. I saw Ethereum get down to $1080 earlier today, so hanging on to that support by a very thin thread…
The crypto miners are the ones though that really fell out of bed though, with companies like Galaxy Digital, Hut 8, Bitfarms, Hive, BIGG digital assets, and Riot Blockchain are all plumbing new lows after huge crashes to the downside over the last year.
There may be more carnage to follow, but the whole crypto sector is starting to look more compelling for a contrarian trade standpoint. I’ve not been in Bitcoin since late 2020, and not been in the crypto miners since 2021, but when asset classes just fall apart like this, they often have dramatic dead-cat bounces that can be nice trades. For now, just watching, but I may deploy some funds into the cryptoverse if things keep unraveling at such a steep pace…
Oh look… more Fedspeak… Don’t you just love it when these geniuses try to talk the markets into submission, by spouting off about their economic models and what the markets should do?
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Fed’s Daly says financial markets are acting like interest rates are much higher than they actually are
Greg Robb – MarketWatch – Mon, November 21, 2022
“Financial market conditions seem much tighter than suggested by the actual level of the Federal Reserve’s benchmark interest rate,” said San Francisco Fed President Mary Daly.
“Citing new research from the her regional bank, Daly said Monday that tightness in markets is more akin to having a benchmark rate of around 6%. That is well above the actual level of 3.75%-4% that Daly said should only be “modestly” slowing the economy down.”
Hi Ex, the public wants normalcy, that is what they have always wanted and that is what they believe they can have when they go to the poles. Nothing can be further from the truth. The physicians at The Fed know the patient is dying so they utter smooth words to make the situation look calm and under control. The disturbance of the status quo is the last thing that the business class or the country at large wants. The Fed, Washington, and the media are joined at the hip and when they think they can control the markets they are really controlling the minds of the people who want their pablum, and they get it, and it works.
Look at all the so-called smart gurus who say don’t fight The Fed. They believe that the physician is in control. DT
DT, I think your comments are right on point.
Joe Public is desperately seeking a sense of familiarity. The public is yearning for the continued ability to enjoy the latest modern-day conveniences. At the same time, there appears to be a lack of interest in demonstrating an honest appreciation for western society having to invest a commensurate level of effort and sacrifice to realize that sustainable dream.
Within this passive fantasy, the powers that be will put forward a supporting storyline, which serves up the promise of a good life and avoidance of stresses. I can understand why the conditioned public would tend to gravitate toward the warm words of safety and calmness.
I would propose an adjustment to your last line. I believe there is a slight nuance in that the public ‘wants’ to believe the physician is in control.
Thanks for sharing.
Hi Canuckski, The Central Banks and The Federal Reserve will do anything to avoid a possible panic brewing, they will always decide that anything is better than a panic.
The public and the institutions will not be shaken out of the market by anything short of a major disaster, that is the lesson plain and simple. Look at what happened to FTX, the investors refused to see what was happening until FTX filed for bankruptcy. The same goes for the conventional market and the rest of the cryptos. DT
Normalcy Bias…
Well for those invested in GASX that was solid news this morning.
https://ceo.ca/@newswire/ng-energy-successfully-tests-112-182-and-212-mmscfd
Recovered one-third of yesterday’s take down. I guess that is better than having a flat tire without a spare. Other than that, I added back Eloro today and my chart which I can’t vouch for, seems to indicate a “hammer thingy” turn around after a triple bottom. Hammer thingy is a technical term that Craig Hemke developed I think during a trip to Vegas. If you challenge that chart stuff, then ask Matthew for correct information.
Today was a good day for Mr. Greenjeans, LOL! DT