The Fed’s Decision Sent Stocks Rallying – Here’s What’s Next

[Trading With Larry Benedict]( The Fed’s Decision Sent Stocks Rallying – Here’s What’s Next By the Opportunistic Trader Editorial Team On Wednesday, the Federal Reserve said it isn’t ready to cut interest rates yet. Fed Chair Jerome Powell explained, “Inflation is still too high, further progress in bringing it down is not assured, and the path forward is uncertain.” So the Fed funds rate remains at its highest level since 2001. But the market rejoiced following his assurance that further rate increases didn’t seem needed.The S&P 500 Index shot up 1.3% in one hour. And the Nasdaq Composite Index jumped 1.7%. But time will tell if that exuberance can last… After that initial surge, markets ended Wednesday almost flat. This kind of sharp action ensures we’ll have plenty of trading opportunities in the weeks and months ahead. As Larry wrote to The Opportunistic Trader subscribers on Friday: The market is going to scrutinize each piece of economic news closely – especially the nonfarm payrolls and unemployment data… Chair Powell stated that it would take a “meaningful” jump in unemployment to override inflation concerns and provide the basis for rate cuts. So we’ll keep a close eye on the next Consumer Price Index inflation and retail sales prints that come out in the middle of the month (May 15). And Personal Consumption Expenditures inflation data (the Fed’s preferred measure) is due out on the last day of May. We’ll keep you updated on the latest developments – and continue bringing you the best trading insights around. In the meantime, catch up on this week’s content by checking out the links below… Recommended Link [Why is America’s Money Supply Collapsing?]( [image]( Having just shed a trillion dollars… S&P Global says, the money supply is “falling at an unprecedented rate.” MarketWatch calls it the “incredible shrinking money supply.” Could the Fed be running an operation that shrinks the dollar pool to zero? One top analyst says “YES!” [Click here for the full story]( -- --------------------------------------------------------------- [thumbnail]( [Can the Troops Catch the Generals?]( If the leading S&P 500 stocks are the generals, then small caps make up a big part of the troops… --------------------------------------------------------------- [thumbnail]( [Adobe Looks Ripe for a Bounce]( After a 93% gain, Adobe has languished. Yet conditions are setting up for a recovery… --------------------------------------------------------------- [thumbnail]( [CAT’s Recent Weakness Looks Like a Sign of Things to Come]( After a 70% rally, Caterpillar has tumbled. And its down move accelerated last week… --------------------------------------------------------------- [thumbnail]( [The Truth About So-Called “Shrinkflation”]( Inflation’s identical twin, “shrinkflation,” just caught the attention of the mainstream media… --------------------------------------------------------------- [thumbnail]( [How Market Makers Hedge Using Options]( Chances are that when you place an options trade, the person on the other side of that trade will be a market maker. --------------------------------------------------------------- [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](