Apr 6, 2017
7 0

Morning Stock Market Update – How the Fed scared the market, and big events of today.

Written by
(Auto-generated Video Transcript)
hello good morning everyone welcome to our morning market update for Thursday April 26 and 27 teen is to george pappas of rio once i found out their view on brady see the rate steady the end of the year the israel seized read study them there um alright morning i hope you guys are having a great day i gave our group a little pep talk here i'll give it to you as well i know yesterday was challenging they had a trade there's a lot of opportunity for some of the more experienced traders they probably took advantage of them some of others you know it was it was a tough day i had an opportunity to be a rough day first on the upside on the open and then to the downside afterwards but there was method to the madness there was a reason that salaam happened we'll talk about that today i want to give you this piece of advice yesterday's results are because of yesterday's efforts today's results are because of today's efforts don't allow what happened yesterday to cloud your judgment today every day is a day trader it's a fresh slate that's one of the beautiful things of this job is you don't have to go to sleep with yesterday's worries or with yesterday's mistakes or yesterday's concerns you wake up it's a fresh day it's a new beginning it's a new morning every day and then when you're done for the day there's no more stress you don't have to worry about what happens overnight what happens in China Japan North Korea launches missile who cares all right you're all in cash she can't touch your cash all right today's markets Asia down one-point-four percent to Japan getting whacked really hard at 1.44 same Hong Kong down half a percent China up point for Frankfurt down point oh sorry trying to point for India down point2 so really Japan's of the big loser here overnight um in Europe midday London's down about point 3 para some point to Frank for down point2 so really flat day let's just call it even futures on the US side douse wat SNP's flat now actually getting a little bit of some gains perfect i had my profit target the subscribers i was long here I just got out on the plus eight on her strategy alright so I'm out of that trade so I was long before the open I got starting off the day with a winner um Nassau recipes just broke above that high overnight so we're getting some upside traction crude oil at point one percent trading 5119 last price currently 5150 so it's rallied on the pit open at 9am alright so we're starting today strong here be strong energy strong overnight we recuperated some of the losses the on the overnight session we started week we got pushed lower and before the European session open prices are to rally Europe took us onward and upward and now we're we've rallied off those lows overnight okay so what you need to worry about today we got some initial jobless claims we got the Bloomberg consumer comfort index at 9 45 but not gas inventory numbers at ten-thirty I like to trade natural gas I like to trade oil inventories as well yesterday's trade we we pinpointed a trade excellent we saw the inventory number come out with short of the thing I rode some profits on oil sweet rated well yesterday actually really well for me um what else have you got to see here money supply of 430 fed's balance sheet at four-thirty p.m. i'll be around i just read the update i'll probably done early today i'm looking for a 12 p.m. exit and you want to leave I want to make get in make my money and go because tomorrow is the biggest opportunity of the week tomorrow you can single-handedly make your week make your month I don't know if you can make your year you shouldn't make your own one dicks your trading too risky all right tomorrow's non-farm payroll day so what that will bridge into it it's a nice little segue expectations are for 180 thousand new jobs we've had really good reports for March we expect 180 we had a really good report for februari and for January all right remember there's three components to this non-farm payrolls report it's the first friday of the month unless the 12th of the previous month is not on the third week sounds confusing but something most of times it's the first friday of the month sometimes it'll actually followed with the second friday the month it's better that you can solve the newswire bloomberg economic column there's a perfect resource so too is 4x factory calm all right but tomorrow's a big day at eight thirty in the morning it's a big day it's going to a big impact on on the market it's going to provide a lot of trading opportunities and there's going to be huge movement all right either way whether it's a miss whether it's a beat or whether it's nothing there's going to be opportunity for some volatility for us to take advantage of um we're not going to have a myth or a morning market update tomorrow on youtube so just a heads up next one's going to be on Monday so I'm gonna wish you guys a good weekend at the end of this but tomorrow subscriber own the event we're going to start at eight fifteen in the morning eastern time and we're going to trade this non-farm payroll report I'm going to train it right through the open and finish at ten alright tomorrow I want to step on this thing early and go home at 1030 or 11 and by go home i'm at homes just turn off the computer 11 and not have to worry about trading an afternoon you're trading friday afternoon your new you got a prop trading company getting coffee for some of the traders and maybe now that they're all gone you get a shot to get on the terminal in your demo account your new or your down money if you're trading it after you and that's just the reality of the business friday afternoons that's who's at the terminal um non-farm payroll days tend to be a little bit different and the monday after the non-farm payroll days also slower so be careful get out there make your money they'll be opportunity tomorrow subscribers broke that down in your calendar we start this webinar tomorrow at eight fifteen a.m. we're going to preview the number there's three components a lot of traders get caught up with this headline number 180 k beat or miss but there's a lot more depth to this report than that and i urge you guys to trade it a little bit more intelligently than just looking at a number good or bad it's non binary it's not one or zero it's a lot more depth into this report it means a lot of things it's got a lot of implications I will trade a few other subs and we'll do it live okay so if you want to sign up join us now is the perfect time to do it go to trade for academy com sign up for the day trader package gonna get the pro bundle you get the options included as well for 139 a month 30 day money back guarantee so good time to check out what we do give it a shot it's literally risk free free alright next piece of advice or not advise next piece of news Trump is going to meet with Chinese President today and tomorrow he's meeting at his mar-a-lago golf club in Florida all right what a guy hey come on at world leader let's come and talk in my 200 million dollar resort love it ah alright this will they're gonna discuss a lot of stuff trade imbalances and really be talking on jobs all right the one China policy that Trump was accused of invading or voiding rather and a threat of North Korea's nuclear program so that's gonna be on the agenda that's going to move the market be super cautious today today's one of those days and you don't want to be honest with it's increasingly becoming every day is one of those days where you need to have a news feed okay I'll give you a free one financial juice com they don't charge you a penny but be careful sometimes they squawk stuff on a delay they'll say it and it's already happened don't use the news wire to find out why moves have happened use it to kind of start to get some ideas as to what might happen in the future give me an example all right something hits the wire about Trump with the health care bill don't just say no health care bill short say well what kind of implications health care bill have for the future of his administration all right maybe they won't get the funding for a tax plan now all right now it's starting to look bad so you got to start to think that way it's not a surface type of game it's a depth type of game it's increasingly becoming so and you need a good news source that's a great one subscribers for trade pro cabin you get a really good discount to trade the news a professional squawk wire it's in proprietary trading companies across the world on the desk right it's that or ran squat those are your two options if your subscriber for any of our packages you get access to the discount if you're not I can't offer it unless they do business with you fortunately that's one of our deals on becoming a reseller for trade the news all right um so you got that today as well there's some commentary house speaker Ryan you said the house in the Senate and White House are not on the same page regarding tax reform it could take longer than the health care overhaul all right so now the market saying all right Trump you tried the health care bill that didn't work out now you're saying tax reform could be delayed now the market starting to get skeptical about what he says and government's going into recess as of this friday for two weeks to get a vacation so basically no laws no administration have you passed curious to see how the market behaves without any uh Washington influence into it or Trump tweets I just deafening of a tweet I garrick using a tweet another vacation but it's just it's an interesting time period they're still talk about this health care bill now I saw it on the wire this morning so that might breathe some optimism at the market okay so watch out for that as well so it's that it's china and us meeting ZN Trump and here's the other big driver okay guys this is huge yesterday what the Fed said was a game-changer I told you if you want to go and watch the previous day morning market update it's a good opportunity for you to watch it to see that not what I say works but what I say is worth paying attention to and here's what I said yes sir I said it's not about interest rates anymore nobody gives a darn about interest rates nobody all right interest rates we know they're going to go up we know the economy is doing better jobs marques do better what the Fed wants to see their seed interest rates are going to increase all right that's a given that's factored in its price in all right there's no surprise there the market doesn't price in information unless it's a surprise then or reprice and move remember markets move on the repricing of information and emotion so what the real big event is is fed to balance sheet i can tell you this firsthand every professional trader every institutional trader everyone at a desk does this for a job right now the number one concern with the fed is how are they going to unwind this four-point trillion 4.5 trilling on a balance sheet that they hold and i'm going to tell you this it ain't going to be easy and the focus has shifted to that let me read some comments here to you guys and it's two things that really spook the market one of them alright so the FOMC minutes showed from the March fifteenth meeting I remember March fifteenth is when they hiked the interest rates now the minutes come out a month later almost a month later and this is this is what they said all right several officials said that adding a symmetric or symmetric to the statement would reinforce idea that two percent target wasn't the ceiling they basically debated saying a two percent isn't a hard target now here's where it gets non-binary like I told you they're saying inflation now a two percent is no longer a target why would they say that think about what that means because we're close to two percent we're pretty much there so what are they saying that it's not a ceiling by saying it's not a ceiling they're saying they don't have to hike rates just because there's inflation that's a dub estate Minh you see how you connect those dots that's how you gotta think guys you got to put this stuff back to back I know they've been were trading we like to see an indicator or system or a guru line at all up for us we'll just click the button and make millions it don't work like that welcome to 2070 it's a totally different market um so this is the other commentary they made fed officials saw January consumption slow down as temporary so they shrug that off this is will really spook the market this one next sentence started to drive the prices lower inner trading room when this happened what did I tell the guys in the trading floor chat I said oh oh I had pasted that and Barbara actually face it as well one of her subscribers or both pretty much face it at the same time but she did beat me by two seconds so good job Barbara but what what the statement was this and it spooked the hell out of the market alright it said most fed officials not most some fed officials all right viewed the stock price or the stock market as quite high it's interesting and that's an admission that the stock market is now factored into the decision-making process for the Federal Reserve that's an on paper written admission in the meeting minutes that the discussion is centered around not just inflation not just jobs but also around what around stock prices and when the Fed officials believe stock prices are quite high some of you might try to connect the dots as a stock prices are quite high so they're gonna be done ish okay they're gonna stop raising rates or the markets gonna like that it's gonna pop know when the Fed says stock prices are quite high think about that they're gonna sell off some people get spooked out what do they do if you got a long portfolio you're going to sell some S&P 500 futures to head yourself you're not shorting you're hedging and a lot of traders don't understand that what the markets go down it's not long selling it's not shorts hitting the bids which could be but it usually isn't the first people to start getting spooked out are the hedgers and they'll sell some ESPYs to hedge their long exposure on their portfolio or if they have options or salsa mess peas to offset some of that Delta it's called Delta hedging gamma hedging she's kind of other terminology way out of the scope of this this update but but it's covered in options course um that's kind of what got the market spooked let's see if there's anything else now onto the balance sheet and we'll finish it off here nearly all participants said the balance sheet policy change should be communicated well in advance of any actual change so what the Fed did here was reassured the market it said hey we know you guys are looking at us for some direction on how we're gonna unwind this big balance sheet that we've created and what they've said is we acknowledge that and we're going to communicate any changes to you before they have it's a little bit of a calm down relax this change is coming but you're gonna know about the wall ahead of time right that's a bit of a you know concerned parent not trying to unleash their child and saying all right let's sit down let's have a talk yeah you might be changing here's the new rules Baba and that's kind of how the fed approach hits with three interesting takeaways number one the Federal Reserve is um the fact what I've got my three takeaways number one is the fact that yes they are actually focused on a balance sheet they're going to tell us when they're going to unwind number two they view the stock prices as high and number three is an affirmation what we already know you know the economy is doing good jobs growing inflation is growing but inflation is not a hard target at two percent so a bit of a dovish statement on inflation we got so count that out double inflation all right balance sheet focus is now where they're looking at but they're going to give you clear communications and the stock prices are high they're concerned about an asset bubble starting to form all right you form your own opinion but that's how the shift has happened and if you see somebody else on youtube or somebody out there describe it that cleanly for free somebody else that I'd like to know you take me on at the comments section and I want to like that person's youtube video because that's just happening and in order to get this kind of info you often have to be subscribed the institutional reports which I am alright so I've kind of the messenger for a lot of this news look out today's gonna be a volatile day I'll tell you that much everyone looks for me and says he's gonna be up there down the essay so I was gonna be update it was an update in the morning I didn't catch a lot of the upside and I'm honest with you on that I didn't want to chase the price I didn't get in on the open I expected to drop and I'm not chasing the price I hate chasing price because the one time that you look at it and you say darn it I should have bought it would have caught a 10-point pop a one time you make that decision to chase the price and it works is not enough money to cover the nine out of 10 losses when it doesn't work so be careful you're not doing this I'm gonna repeat myself you're not doing this to be right you're doing this to be profitable you guys have a phenomenal day remember tomorrow there's no morning market update so that means we'll see you on Monday April the I to do math six seven eight nine the tenth month April 10th we'll see then you want to sign up now's the best time to do it trade tomorrow we're going to trade the non-farm payrolls huge opportunity in front of that number a massive potential to make a lot of money or to just learn a ton of information on how to actually trade it but to look for and how to dig into the three core components it's not just a headline it's to others to make a big difference and how you trade in your decision that you take you guys have phenomenal morning have a great afternoon trade careful out there manageress oh forgot one big thing Apple Apple Snapple apples being sued we covered them we covered them in our update yesterday and Apple was very volatile but it followed the pattern of the equity markets right one of her frequent listeners and commenters King hello King if you could please tell me your first things I could refer you buy it I prefer that versus king you ate my king um but he said it was tough to train it out there but at least I had to stop so good job having a stop loss a great way australian competition and consumer commission ACCC for alliteration purposes has sued apple inc alleging it uses software update to disable iphones which had cracked screens fixed by third parties as your phone breaking you're going in somewhere else to fix it because you want to pay three million dollars to get your $200 iphone fakes or 700 or iphone fix all right and somebody fixes it for you a third party and your phone gets bricked brick means it's not a lot it's frozen now from a software application you can unlock a break you gotta call apple an apple says nope sorry we're denying you and unlock as a third party use your phone alright that's a bit of a slap in the face for some of that you paid seven eight hundred dollars for unlock device are you kidding me if I pay eight hundred dollars and I can't own my device after I choose to change my own screen that's that's sick that's despicable and Apple deserves to get sued so watch out the ACCC Australia suing them that might put some downside pressure thank goodness I don't know an iphone that's all I can tell you because I break the darn thing I'd smash it in the ground videotape it and say last product they bought from you Apple felt better breaking it than owning it all right take care you guys have a great day I wish you the best trade careful subscribers hang tight we're going to set up the levels for today i'm going to set up our trade opportunities and get out there make some money youtube if you want to check out what we do you have options in education we got futures education you can bundle both and save go to trade pro academy com have a look at what we do guaranteed you won't be disappointed and I guarantee you're gonna learn something out there and our courses that you've never seen before because it works and I challenge you to come out and try if you don't like going to give your money back but guarantee you will take care have a great day see you guys on Monday tomorrow's non-farm payrolls at eight-thirty wake up early and just watch what happens even if you don't trade it watch it it's your job as a trader take care of guys have a phenomenal weekend party hard do it safe don't get in too much trouble a little bits okay though all of us subscribers give me one second let me into the broadcast we get started trading SNP's come back down as I think my profit cells back off beautiful our YouTube adios ciao I bid you farewell


Read the video

In today’s stock market update we discuss what the Fed said that roiled the equity market and caused it to slump into the afternoon close. We also preview the big meeting between Chin and the US today, as well as the Non Farm Payrolls report for tomorrow.

Article Categories:
Stocks · Investing · Videos

    TRADEPRO Academy was launched with the passionate goal of making stock trading accessible to anyone with the desire to learn.Our reason for existence is to teach the seemingly complex field of security analysis through a graduated approach to maximize your comprehension.We are not just an educational source, we are also practitioners, providing the ideal blend of theory and application to increase your understanding and help pave the road for your trading success.

    Comments to Morning Stock Market Update – How the Fed scared the market, and big events of today.

    • the name is "Lee" thanks for the morning shoutout!!! lol@King_Lee212 twitter

      KING LEE April 6, 2017 8:59 pm Reply
      • No problem Lee.

        TRADEPRO Academy May 23, 2017 2:47 pm Reply

    Leave a Comment

    Your email address will not be published. Required fields are marked *

    Join our feeds to automatically receive the latest headlines, news, and information formatted for your club's website or news reader.

    Social connect: