Tuesday Market Outlook: December 12, 2023

[Image] Tuesday Market Outlook: December 12, 2023 Happy Tuesday, traders! Are you ready for a rollercoaster week in the stock market? Because we’ve got a TON of major events happening this week—catalysts that could shake up the entire financial world. Between an impending Fed meeting, the buzz around potential interest rate cuts, and a monumental change happening to the major index funds—our plate is full and it’s time to take advantage of these opportunities. With that in mind, keep reading to see my complete market outlook for this week… All About Wednesday’s Federal Reserve Meeting First and foremost, trader's eyes are on the Federal Reserve meeting happening on Wednesday. The Fed makes decisions that can affect the entire economy, especially when it comes to setting interest rates. When rates are low, it's cheaper for people and businesses to get loans, which can help the economy grow. But when rates are high, borrowing costs more, and that can slow things down. Right now, there's a lot of talk about whether the Fed will lower interest rates. The market is expecting the Fed to cut rates three times in the first half of 2024, each cut being by 0.25% (that's what "25 bps" means—basis points, with each basis point being 0.01%). But I think that might be a bit too optimistic… I have a feeling the Fed might try to cool down these expectations and suggest they won't be cutting rates as much as people are thinking. And such a statement could cause big dips in widely-traded stocks. Watch closely for this as we move through this week. The Major Indexes Are Getting Shaken Up Another big event this week is the massive rebalancing of the S&P 500 and Nasdaq 100—when they update the list of stocks that make up these indexes. This is set to happen at the close of trading on Friday and will carry over to Monday. Think of the S&P 500 and Nasdaq 100 as baskets of popular stocks. This week, they’re going to change which stocks are in the basket. This can be a big deal because traders pay attention to these indexes, and changes can affect stock prices. A removal from a major index usually causes a drop in share prices, while an addition often causes a boost. One important tip: be careful about jumping into stocks that have just been added to the S&P 500, like Uber Technologies Inc. (NYSE: UBER). UBER YTD daily chart — courtesy of [StocksToTrade.com]( You might think that being added to such a big list would be good for a stock's price, and in the beginning, it is. But later, these stocks often don't do as well right after they join the index. The stocks get a lot of attention at first (UBER is up nearly 20% in 30 days), but then they don't live up to the hype. This is often called a ‘buy the rumor, sell the news’ event. In situations like this, I like to hold spreads over the weekend in my Burn Notice system. In practice, this means I make a bet that the prices of these new stocks in the index will fade lower after all the excitement dies down. I do this over the weekend because that's when the rebalancing happens. By Monday, I can see if my bet was right. So why is all of this important for you? Well, these kinds of events can move the market dramatically. The decisions the Fed makes about interest rates can change how people feel about trading or investing in certain stocks. And the rebalancing of major indexes like the S&P 500 and Nasdaq 100 can shift a lot of money around in the market—potentially opening up trading opportunities in the process. Closing Thoughts As you can see, this week is packed with potential market-moving events. From the Federal Reserve meeting to the rebalancing of major indexes, each event has the power to cause ripples in the stock market. These catalysts can create incredible opportunities to make money, but they can also be extremely risky. Trade accordingly. And remember, while it's tempting to follow the crowd, sometimes going against the flow—like not chasing after newly-added stocks—can be the better move. But wait—you don’t have to go it alone… IMPORTANT ANNOUNCEMENT: Airing LIVE on Wednesday, December 13th at 12:45 pm EST… Year-End Stock Market Event - caused by one obscure tax document - will spark a flurry of explosive overnight stock moves to close out 2023. I’m joining Tim Bohen for a LIVE briefing to reveal the details behind what he calls The Final Countdown. A year-end catalyst that dates all the way back to 1925 that has historically caused huge price moves … over and over again. During the LIVE broadcast, I’ll reveal how anyone can use a specific “3 pm countdown window” behind the scenes of the stock market… to target repeatable 15-20% overnight gains to close out 2023… [Click here to RSVP to the real-live briefing now]( As always… Stay Street Smart, Jeff Zananiri   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. Any results displayed are extraordinary and are not typical and will vary from person to person. For more info read our [Earning Claims Disclosure]( About: Making money trading stocks takes time, dedication, and hard work. My goal is to teach you how I have succeeded in the market, but you may not achieve my results. Remember, there are risks involved with investing, including the potential loss of money. We are strongly committed to protecting your privacy and providing a safe & high-quality online experience for all of our visitors. We understand that you care about how the information you provide to us is used and shared. We have developed a Privacy Policy to inform you of our policies regarding the collection, use, and disclosure of information we receive from users of our website. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. To manage your receipt of marketing and non-transactional communications, you may unsubscribe by clicking the “unsubscribe” link located on the bottom of any marketing email. Emails related to the purchase or delivery of orders are provided automatically – Customers are not able to opt out of transactional emails. We will try to accommodate any requests related to the management of Personal Information in a timely manner. However, it is not always possible to completely remove or modify information in our databases (for example, if we have a legal obligation to keep it for certain timeframes, for example). If you have any questions, simply reply to this email or visit our website to view our official policies.