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Dayn dk
Sep 21, 2023 8:55PM ET
Mr Jani hope you bought todays dip .. lol
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S&P 500: Post-Fed Decline Is a Buying Opportunity
www.investing.com/analysis/sp-500-postfed-decline-is-a-buying-opportunity-200642025
S&P 500: Post-Fed Decline Is a Buying Opportunity
By Jani Ziedins | Sep 21, 2023 02:45AM ET The S&P 500 shed 1% after the Fed kept interest rates unchanged.
That non-move was widely expected, so stocks were not responding to the September rate decision but to what the Fed said about the remainder of 2023 and 2024.
At this point, the Fed’s data telegraphs one more rate hike this year and keeps rates that high through the end of 2024.
None of this surprises anyone because the Fed’s been consistent in their messaging for weeks, if not months. But it does poke a hole in the hopes that the end of this tightening cycle is closer than 2025.
That said, odds are good the Fed isn’t going to stick to its plan through the end of 2025 because when else have they correctly forecasted the economy a year and a half ahead of time?
Most likely, the Fed is simply leaving the door open to further hikes so they don’t disappoint investors if they need to hike again. This is the classic under-promise, over-deliver.
Since the Fed decision and outlook were exactly what the crowd expected, it is already priced in, and we shouldn’t expect Wednesday’s selling to turn into anything more than another test of 4,400 support.
It takes new and shocking developments to send the stock market into a tailspin, and we didn’t get anything remotely close to that yesterday afternoon. Two steps forward, one step back. Rinse and repeat.
As I wrote Tuesday evening, I am approaching this as a buying opportunity. The only question was if I was going to buy a pop Wednesday afternoon or wait through the dip and bounce:
I’m a buyer on Wednesday afternoon if the index trades well after the Fed statement. If prices fall, I’m still interested in buying, but I will wait for capitulation first.
Maybe that happens Wednesday afternoon, or maybe we need one last puke-out Thursday. But no matter what, I am looking at this as a buying opportunity.
The only difference is if I buy on Wednesday afternoon or wait until Thursday or Friday.
Since the market didn’t pop yesterday afternoon, that means I’m trading the dip and bounce. Maybe we bounce today and never look back.
Maybe we fall a little further under 4,400 support before bouncing. Either way, I’m waiting for the bounce and then jumping aboard. The lower this goes now, the more money I make buying the bounce in a 3x ETF.
Anyone trading yesterday’s decline like the world is ending clearly isn’t paying attention. The market is consolidating the summer’s gains near 4,400 support—nothing more, nothing less.
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S&P 500: Post-Fed Decline Is a Buying Opportunity
Comments (9)
OldFng Guy
Sep 21, 2023 12:24PM ET
Well you were wrong
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333X2
Sep 21, 2023 12:24PM ET
he wasn't wrong. he didn't predict anything. he made a plan of when and how to buy. based on that plan I'd assume he bought this afternoon or will be buying tomorrow morning after least that's how I read it. just my opinion
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Guidothekiller pimp
Sep 21, 2023 6:49AM ET
I plan on buying a small amount of Calls today then Roll and buy more if I need to till it turns around. I can usually squeeze out a profit as long as it doesn't fall more than 100 points from my original buy in and I don’t see this falling that much more. Thanks.
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Anton R Gaming
Sep 21, 2023 6:41AM ET
I like the psychology behind your strategy and we've seen this play out quite a few times this year
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Otis Grant
Sep 21, 2023 5:41AM ET
This is the 8th week closing red and its barely below 4400
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Tony Rice
Sep 21, 2023 5:41AM ET
I have seen the same for 8 straight weeks, always being told, this is a buying opportunity. Megas staying high while most mids and smalls are at 52wk+ lows. Megas are getting ready to collapse and the smalls and mids get it worse. Then there will be a buying opportunity.
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Otis Grant
Sep 21, 2023 5:41AM ET
I have seen the same for 12 months always being told the market is just about to collapse. small and mid cap buying opportunity is now
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Otis Grant
Sep 21, 2023 5:40AM ET
I agree, but as you can see from the comments, the bears think they have won a huge victory, and we are on the way to 3500 lol
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Dayn dk
Sep 21, 2023 4:47AM ET
You are wrong .. spx goes to 4220
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Anthony Anyanwu
Sep 21, 2023 4:29AM ET
this is refreshing to hear quite honestly, after yesterday's bloodbath (somewhat)...
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Miroslav Budinsky
Sep 21, 2023 2:53AM ET
👍 thanks
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