| Nothing has changed. Why is it crashing? |
| More interest rate hikes coming. https://www.pbs.org/newshour/economy/interest-rates-likely-to-increase-as-fed-signals-more-rate-hikes-ahead |
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Inevitable results of destroying the energy sector.
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| The market knows the data that the Fed reads to make its decisions so they anticipate what the feds will do. If the feds raise it by .75, it's kind of already figured in. If they raise it by a full point, it will likely go down further. If the feds go full throttle on 'we'll do whatever it takes and there will likely be pain' in their statement it will likely go down further. If they temper anything it will probably hold or even raise a tiny bit. |
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We are down 1%, that's hardly crashing.
I actually think if they raise the rate by 100 basis points the market will jump -- it means they are serious about inflation and will get it nailed down and probably switch right back to easing. |
The above knows what they are talking about. The last CPI caused the current downturn. The 'market' knows that the Fed has to "fight inflation" hard either with a 1.00 rate increase or talking tough about future pain. Either will drop the market tomorrow, maybe only temporarily for 30 minutes. If neither happens, the SP500 will likely squeeze to 3950 tomorrow afternoon. Squeeze occurs due to too many shorts that need to cover once their stop is hit. Stops are 3880-3920 range. Keep in mind, many are hedged/shorting. Keep in mind that last the 4 FOMC's, the market squeezed the hell out of the shorts. |
| 300 point is not crashing. You guys have no perspective |
Key level is ES 3850 support. If it drops under and doesn't pop back over in 15 minutes, short it down. Check the chart from the last 2 weeks. 3850 is Key support. Next levels down are 3825, 3800, 3770. |
New here. How do you identify the key levels? Are they subjective? |
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Screw this scam, Biden better stop the fed from raising rates or hell lose the midterms and re election.
Everyone is suffering the fed is clueless they've raised too far already fire the fed they hurt genz and millennials to protect boomers |
They are objective. The simple basic way is to pull up a chart from past 5 to 20 days, draw horizontal lines at supports and resistance. You will find that many lines act as support/resostance multiple times. Multiple times is key. Note that when a stock goes under a support, the support turns into resistance under recapture. There are other methods such as volume profile. Check that out. Every pro uses horizontal lines, though. I suscribe to 2 pro trader rooms. |
The fed is independent from Biden. He has no power or authority over their decisions. Basically we're reaping the costs of 'past sins' and recent chaos from the pandemic . We have a fed who kept quantitative easing and artificially low rates too long after 2008/2009 crash then we had a stock market goosed by Trump's tax cuts when we needed to run the economy warm instead of hot. Tax cuts gave a short-term sugar high for the markets, which--had the pandemic not happened--the fed could cool down a bit by raising rates and reducing bond purchases. But before they really did that in earnest, the pandemic hit causing a lot of chaos and uncertainty and then messing up supply chains. Then just as we got a bit of a handle on that, Russia invaded Ukraine. Both the pandemic and Russia's invasions are inflation drivers and supply chain disrupters. But now the fed *has* to raise rates to curb inflation otherwise it will set in even more. The market doesn't like rate increases in the short term, and there may be a mild recession, but in the middle term, rate increases will likely be the right decision. I personally think they should slow down the increases for the fall to see more evidence on the impact on inflation, but I also know the Fed knows a heck of a lot more than I do about macroeconomics. |
How are they protecting boomers? Rates raising lowers the stock market. The goal of the Fed now is the lower the stock market, but not too fast or too much. If they mess it up by lowering the market too much or too fast, the Fed will start QE again (print money) to take us to all time highs. |
| Protecting boomers are you serious? My mom has been losing $$ in her 401k and IRA since March 2020. she also is about to start taking mandatory disbursements. Many boomers are also on the cusp of retirement, which frankly is exactly where I wouldn't want to be with my money in those types of accounts right now. millennial and gen z have years to rebound from any losses. |
Stock market is up quite a bit since March 2020. Does your mom own a high percentage of Bond funds? I think those are down. |