The Market’s Hopes are About to be Squashed

Bring on the wet blanket. [Jeff Clark's Market Minute]( Jeff’s Note: Right now, my colleague Imre Gams is sharing his [latest trading breakthrough](. It’s a new and exciting strategy to make more money, more easily, and with greater certainty than anything else you’ve likely ever seen before. And it’s returned a 79%-win rate for his readers. To watch the replay – and discover how this strategy could work for you – [click right here.]( --------------------------------------------------------------- The Market’s Hopes are About to be Squashed By Jeff Clark, editor, Market Minute Bring on the wet blanket. As of Thursday morning, the stock market had bounced sharply off of last week’s [extremely oversold conditions](. The technical indicators have moved into neutral territory. Investors are feeling a bit more bullish. And, Nvidia (NVDA) just crushed its earnings report. Optimism is returning to the stock market. Jerome Powell could put a stop to that. The Chairman of the Federal Reserve Board is scheduled to speak in Jackson Hole today. He’s unlikely to say anything new. He’ll likely just confirm that the Fed is “data dependent.” It wants to get inflation under control. Interest rates will be “higher for longer.” Recommended Link [Digital Dollar Could Send These Three Stocks Booming]( [image]( A digital dollar (or CBDC) could soon replace the U.S. dollar. Most people could end up holding worthless dollars. But a few could get rich from this new shift. If you know the necessary steps to take right now, not only will you protect your money, you could come out of this shift wealthier than you ever thought possible. But you need to act fast. [Click here to get the exact steps to take right now.]( -- But, the market is looking for a nod, or a wink, or a smirk, or anything that suggests that the Fed is nearing the end of its tightening cycle. If we get it, then stocks could rip higher from here. The S&P 500 could rally for several sessions, and we could finish August closer to where we started it. Wouldn’t that be something? But, if history is any sort of a guide, investors are more likely to be disappointed by Mr. Powell than encouraged by him. After all, it was the Chairman’s speech at Jackson Hole last year that kicked off a multi-week decline in the stock market. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. The S&P 500 was trading near 4200 when Mr. Powell took the stage on August 26, 2022. One week later, the index was at 3900. One month later it was near 3600. Of course, the world is different today than it was last year. Interest rates are already sharply higher. The government’s version of inflation has come down – a lot. And, we’re one year closer to a Presidential election. So, there are reasons to expect Mr. Powell to clear his throat or shuffle his papers when he says the exact same thing he has said for several months. And, the computer algorithms will take that as a buy signal. But what if it goes the other way? What if there’s no wink, no nod, no finger guns? What if Mr. Powell looks straight into the camera, and in a clear, unwavering voice, utters the phrase, “We are not done?” A repeat of last year’s decline certainly seems possible. Trading stocks ahead of Chairman Powell’s speech is really just a matter of risk versus reward. Last Friday, stocks were brutally oversold. Technical conditions were stretched far to the downside. The market was set up for at least a snap-back rally. The reward to buying stocks then was greater than the risk. Now though, the market has bounced. Technical conditions are closer to neutral. We’re nearing the seasonally weak month of September. And, Chairman Powell is about to take the stage. We can’t rule out the possibility of stocks continuing higher from here. But, it sure seems to me like the risk to buying this morning is much higher than it was last week. Best regards and good trading, [Signature] Jeff Clark READER MAILBAG What do you expect Powell’s next move to be? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Market Wizard who made $95 million for his clients in 2008 – and predicted the 2022 collapse – reveals his strategy:]( The One-Ticker Retirement Plan How to make all the money you need – in any market – using a single stock. [Click here for the name of the ticker…]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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