The Fed’s ‘Hawkish Pause’ Fails: Time to Go on the Offense

The Fed loves to pretend it matters.

For two days, its members cloister in a conference room, gibbering nonsense. When they finally emerge from their lair, they say exactly what the market told them to.

These interest rate announcements are nothing more than a dog and pony show that attempts to hide the Fed’s incompetence…

Now, we’re left with a “hawkish pause,” which makes as much sense as “transitory inflation.”

Yet, the S&P 500 continues to march higher, despite the Fed actively betting against it.

By now, you’re probably thinking about pinching your nose and buying at these elevated prices.

But you also have that gnawing fear in the back of your mind… the one that reminds you that the last time you did this, the market cracked like an egg, and you promised yourself you’d never make the same mistake twice.

We can’t tell you how high the markets will rise, nor when they will fall.

However, we CAN offer you active strategies no matter what happens.

That’s why we kept coming back after getting kicked out of our managers’ offices until they finally agreed to our demands.

Next week, Hugh Grossman and Ahren Stephens, our DayTradeSPY masters, are holding an exclusive, week-long DayTradeSPY Ultimate Training Workshop.

Now, we know what you’re thinking… stop trying to sell and just give us the goods.

Don’t worry baby birds, we’ll feed you.

Because what most folks don’t realize is that SPY day trades don’t replace your investments…

…they ENHANCE them.

Allow us to explain.

Markets aren’t the ever-efficient mechanisms that we picture in our heads, or at least, they’re not what we’re taught in school. But there are thousands of other factors we never consider.

Think of it this way.

Say a bunch of fund managers decide that Apple’s stock is worth $200. They’ll continue to buy the stock below $200 and sell above $200.

One of those funds, we’ll call it Pelosi Investments, has a bunch of investors pull money from the fund because they don’t trust its management… go figure.

So, Pelosi Investments, which is one of the biggest funds on the block, is forced to sell shares of everything it owns, including Apple, even though the stock is trading at $180.

Unfortunately, that sends the price of Apple down to $160, where the Hunter Fund is forced to cut its position based on the arbitrary rules it set for itself.

Neither the Pelosi Investments nor the Hunter Fund sold Apple’s stock because it wasn’t worth $200. They sold it for entirely unrelated reasons.

Take this microcosm and expand it a billion-fold. Add emotions and a dash of politics, and you have the organism we call a stock market.

It’s why stocks can rise or fall far beyond what we deem reasonable.

Even now, we can see it in a chart of the S&P 500 price-to-earnings (P/E) ratio over time.

We modified this chart to exclude the financial crisis, when the P/E ratio went through the stratosphere.

Our reading sits just above 25x and has been trending upward since 2022.

Doesn’t it strike you as odd to have a reading so high with the Fed policy so tight and getting tighter, not to mention the fact that inflation hasn’t disappeared, China’s is slowing down economically, the fact that supply chains will never be the same… and, oh yeah, there’s a recession coming.

Nonetheless, markets can easily ignore reality until they can’t.

Now, no one wants to wait for rational prices to take over. The last time folks made that argument was in 2010, and they missed the BEST bull market in history.

But who wants to buy stocks at prices like these?

That’s why some of the smartest investors around are also traders.

Markets aren’t always favorable for investors.

However, day trading success isn’t typically correlated to investment performance.

It’s like having a completely independent income stream, which is what makes it so powerful.

When markets start to get silly expensive, no one wants to buy stocks.

However, day traders can use various strategies to profit off momentum, turnarounds and even sideways chops.

So, why DayTradeSPY?

Chances are most of you have probably dabbled with day or swing trading, and were likely struggling to string together more than a few wins at a time.

You probably jumped from one strategy or indicator to the next, trying everything and settling on nothing.

This exclusive workshop is meant to help you break through the barriers that are stopping you from success.

Hugh and Ahren keep things simple.

They trade the most liquid exchange-traded fund (ETF) in the market, the SPY.

That’s it. And that’s all it takes.

With one ticker, Hugh and Ahren built remarkable yet simple strategies that they teach their students.

Don’t miss out on your chance to take part in this incredible four-day workshop.

Click Here to See What’s Included!