Disclaimer, this is not financial advice
Jpow’s announcement yesterday on thursday at 9:20am was called historic for a number of reasons. He announced the FED will continue most of its financial policies it created in july but as the minutes from the previous meeting showed, they were anticipating the stimulus to also be a driving factor for the economy.
The meat of what JPOW said was the interest rates need to increase their targets, as they anticipate the economy’s lack of spending having additional deflationary practices.
In the short term this is very bullish on stocks, you may even see the top blown off of previously “boring” companies like PG, HD ect
The most impact you will see is the bond market
This is dangerous because the bond market going down could trigger an asset liquidation if it drops too low too quickly. It in fact going down as we drag up to the next FOMC meeting in Sept will cause definitive action from the FED.
The plays i am eyeing are
TLT puts or metal calls are good plays, tech calls (msft, amzn, fsly, anything but aapl) ALL WITH EXP 9/18 (nothing past this)
Important things to consider for the month to come,
- FOMC FED Meeting September15-16*
- VIX Expiration 16 September 2020
- Congress Back in Session Sept 7th
Positions right now
TLT 159p 9/18
SPXS 5c 9/18
SQQQ 22c 9/18
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.