How To Prepare For Fed News

Posted by Joe Duffy | May 7, 2025 | Joe Duffy's Trading Advantage | 0 |

I said this weekend that the overall stock market was starting to look high risk for long positions. It traded very tentatively Monday And Tuesday and we now go into FOMC day on Wednesday. I think a lot of optimism is getting built into Powell. He may deliver, but if he doesn’t could be nasty. If he does, this could trigger a final squeeze before lower. Either way, still not thinking this is a good area to be long.

I am not aggressively short at all. On Tuesday I took a short in XHB Homebuilders Index ETF with the stock at 95.40. Note that this week is right back at levels that produced turning points in the past!

Thanks,

Joe

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Joe Duffy

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