Futures are up this morning , ahead of the key Fed decision later this afternoon. The NDX is up 2% and the SPX is up 1.5% and the DOW is well I don't care because it is the DOW and it is boring to trade. Wall Street eyes a new hawkish Fed, as inflation continues to rise over 7% and market conditions worsen. With unemployment where it is and with the current market set back, it might be hard for the Fed to justify any quicker rate hikes . This could be good news and could contribute to the reason the market is bouncing. March/April still seems to be the timeline for the next rate hike.
One trend to consider though, is the last few times the futures were up in January, a huge sell off continued , leading into red territory over 2-3%. This trend could be triggered again, so keep your eyes out for any major shift in volume.
Gold volumes continue to rise to all time highs, as more and more investors are fleeing into commodities to hedge on this market down turn.
There are some key earnings this week for the NDX, which could dictate where the market goes after the Fed decision, either compounding losses or boosting gains . AAPL and TSLA are set to report this week, causing premiums to sky rocket. Indications after the announcements could lead to some quick gains on theta plays .
Good luck trading today and remember to stay nimble and not to try to fight the market .
INSTAGRAM: day trading_traveler