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Morning Brief: The Fed Has too Much Market Power

Powell spoke yesterday, and too much surprise he still is printing money out until Q2 and the rate hike is still planned for March. This spiked markets up, especially the NDX to over 3%, for a brief moment. However, shortly after the market crashed, wiping out all the gains for the day. There are a few things of concern here.

  • The Federal Reserve clearly doesn't care about curbing inflation right now, as elections are coming and a market crash would hurt Dems chances even more in the midterms. Without a curb in inflation, all the market conditions are still in play for more of a sell off.

  • The Federal Reserve has too much market power. The Federal Reserve was created to be an independent, non partisan power. The enormous rise in inflation means they were not doing their job . Also, when the market is swinging with so much enormous volatility solely based on their market policy, there is a real problem here. There is too much market power for the Federal Reserve. It is no longer the silent background entity that it was created to be. There is a huge issue forming here as the Fed is becoming more and more a political entity .


#TSLA beat expectations by a wide margin and forecasted a 50% increase in growth for 2022. However, there are supply chain issues forming for them . And they have also pushed back their truck release until 2023. This caused TSLA to sell off in after hours to~880 before spiking back up to ~970. With the fed decision passing, hopefully TSLA can gain some momentum back. TSLA is also trading laggard after some new ratings came out, with Credit Suisse giving it a hold and Needham giving it a sell rating.

#AAPL reports today. They have finally taken back the market share in China, becoming the number one phone there again after years of being second . The new iPhone 13 say a 32% increase in sales. Huawei dominated the Chinese market but with it out, AAPL should have a great 2022/2024 earnings out look. Huawei's sales have declined 73% year to year, leaving a great window for AAPL. AAPL has a knack of always beating earnings, and with the recent sell off there, it could be poised for a big pop, which could drive the NDX back into a positive bullish momentum signal .


I will probably be working around the calls I bought on TSLA yesterday before the market close. I may go naked on some apps calls and work those on Friday as well. I am just going to stay nimble here. #MRNA and #NFLX are up in pre, but they have a history of selling off end of day, as both have very bearish trends that have been forming over the last two months.


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