Traders have nearly given up on any sign from today’s meeting in Jackson Hole and have resided to just hoping for some clarity on how the Fed plans to navigate this current climate. But the reality is that is highly unlikely. With a big divide down the middle of the group of Fed policy makers coupled with a chairman who’s last event made him sound more like a weatherman, any type of grounding is unlikely.

This probable outcome could create a specific kind of market that traders have to prepare for.

Here is a chart of the S&P with the dates of the last Fed meetings market on it:

The biggest take away from this is that traders are starting to tune out the Fed as they focus on the broad global issues and their impact on the economy. Any big movement after these meetings where they simply held rates occurred as a result of the Iran war and increased questioning about AI’s ability to continue to fund its growth.

A highly likely outcome of today is that everyone reads the tea leaves in a different way that offsets each other and we stay in a choppy attempt at regaining a bull rally.

This will create a climate where smart spread strategies make sense and stock pickers will have to look for the outliers breaking out of the chop. These markets are well suited for the approach that Keith Harwood uses to find the trades that are being overlooked in the headline noise. You can grab his Hidden Trade Detector book that explains his strategy here.

Keep learning and trade wisely.

John Boyer

Editor

Market Wealth Daily