Despite lower volume stocks were able to make some gains and close higher. The FOMC meeting this week will have everyone’s attention. Will or will they not cut isn’t the question, but by how much is. Earnings season will continue to roll on and for the most part we have not seen too many catastrophic movements. For those prepared for earnings are coming out on top. It pays to be detailed and diligent when trading stocks. July once again has been a decent month. There are a few days left and with the FOMC capping it off on Wednesday anything can happen. All we can do is ensure our open risk is contained with proper position sizes and exits. The rest the market will take care of and we are just along for the ride.
What to expect this week is a question we would struggle to answer. Our goal is to be ready for anything and everything from this stock market. Although, with the FOMC on Wednesday we do expect some volatility post the decision. Leading up to the day it is tough to tell and usually we do not see much in terms of volatility until they release the decision. Sure, plenty of people are hoping for a 50bps cut. However, it is likely we only see a 25bps cut with language suggesting another one is coming soon. The Central Bank raised rates too much too fast and now are in a situation where they need to cut. The treasury yield bears this out with the 2-year yielding more than the 3-year treasury and has for quite some time. Wednesday will be a fun day, get prepared.
We hope everyone enjoyed their weekends and are prepared for the week ahead. This trading grind isn’t easy and certainly many that cannot handle it. We love it. It is why Big Wave Trading has been around since 2007. Yes, we survived and thrived after the Great Recession. You can beat any market with Big Wave Trading. Go out and crush this week.
