The “Fed Indecision” Opportunity

The Fed paused hikes as expected yesterday. But it was also more hawkish than expected in its statement, hinting that it might hike rates two more times this year.

This has created a bit of contradiction, which you can see reflected in yesterday’s candlestick.

It’s called a doji candlestick, which describes a candlestick with a very small “body” – meaning the open and close price are very close to each other.

That’s what happened yesterday. But look at how long the “wick” on the candlestick was on both ends. This means the market saw huge fluctuations during the trading day, even though it closed largely flat.

This shows buyers and sellers fighting it out (with the buyers getting a very slight edge) over their interpretation of the Fed’s decision.

I expect this to keep playing out over the next few days before a more definitive direction is established.

But this “indecision” can be our opportunity.

P.S. Would you like special trade prospects and potential market moves just like the above sent directly to your phone? Text the word ross to 74121.