The Fed starts its meeting today.
Very few traders expect the Fed to start cutting this time around.
What will move markets is how Powell communicates their economic and interest rate outlook during his press conference tomorrow.
So, for today’s chart – let’s see what the market is expecting in terms of the 2024 rate cuts.
Chart of the Day
This is the number of rate cuts the market expects by end-2024, shown on a weekly basis starting from December 2022.
In December, markets were expecting six to seven rate cuts. Right now, it’s expecting three (which is what the Fed itself has said).
With such a drastic reduction in the number of expected rate cuts, you would have expected the rally to have fizzled out by February.
That has not happened.
I explain what that tells me in the Insight of the Day.
Insight of the Day
Although the Fed may trigger a temporary pullback tomorrow, this is an opportunity we can exploit.
Statistically speaking, Powell’s comments at the Fed press conference typically causes markets to dip.
And with this rally having gotten a little overextended, there’s a decent chance his comments tomorrow could trigger a pullback.
But as I said, we’re still firmly in a bull market…
And I would actually welcome a pullback – because it’s what the market needs to truly start the next leg higher.
Whether Powell triggers a pullback or not…
You need to understand how to find the leading stocks in this market, as these are the stocks with the highest chances of winning regardless of what happens.
And if a pullback starts tomorrow, you can get in at even better prices.
But you have to act now – before the Fed does…
Which is why later today at 11 a.m. Eastern…
I’m going LIVE for a masterclass that will allow you to position yourself in these market leaders and set yourself up for whatever happens next.
So if you haven’t already, make sure you click here to guarantee your spot in my masterclass…
And look out for the login details in your inbox shortly.
I’ll see you soon.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
