Q1 Correction Underway...As Prescribed

A “Not-So-Happy” New Year is underway for many who believed the parabolic run in stocks would not see some type of correction.

We sent this update before the correction in our last F*CK THE FED issue here.

But fear not, we believe this is a classic seasonal correction, and there is a tradeable / investable bottom to be had, once again…

We’ve posted a ton of chart updates on the Nasdaq, SP500, and individual stocks in our FREE Telegram Channel.

Be sure to follow along in there for real-time chart updates with common sense analysis, anyone from beginner-to-advance can understand and take advantage of.

Here’s a sample in the free channel of ARKK Innovation ETF. We have our eyes on this one for a pullback this quarter and then rally:

So what’s going on with our friends at The Fed?

Here are some summary points released today:

• FOMC members generally viewed that rates were likely at or near peak of cycle.

• Several participants observed that circumstances might warrant keeping policy rate at current level longer than they currently anticipate.

Rates could remain at peak longer than anticipated

• Noted however outlooks were associated with 'unusually elevated' uncertainty.

• Almost all participants indicated their base-line implied a lower federal funds rate would be appropriate by the end of 2024; All said clear progress was made in 2023 towards Fed's 2% inflation target.

• Generally reaffirmed it would be appropriate for policy to remain restrictive until inflation was 'clearly moving down sustainably'

• Several participants noted the decline in use of overnight reverse repo facility, saw this reflection portfolio shifts by money market funds

Who could’ve predicted this? (lol)

Well, this all sounds like 2024 Election year speak.

And we would not be the least surprised that the stock market and inflation follows a path that would benefit the incumbent party.

That means healthy new all-time highs for the stock market and lower gas prices.

All the while, a nasty recessionary bear market is lurking… will it go away?

We’ll continue reading the charts combined with Fed and other economic data to keep everyone informed.

For now, no need to panic.

“Don’t be afraid. Be prepared.”