Fed to Quit Raising Rates with Nick Santiago (Ep #482)

April 10, 2023

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends.

Today:

1. The major stock indexes are starting out on the weaker side again. Traders and investors are coming off of a 3-day weekend where the market was closed last Friday. Last Friday, the non-farm payroll report was released and it told us that 236K new jobs in March. Does this put the Fed in play to keep raising rates at the next meeting? Time will tell.

2. Traders should note, despite yields pulling back a lot over the past couple weeks since the banking crisis started there is still a big inverted yield curve between 2’s and 10’s. That tells us that there will be more problems down the road.

3. Tech is under pressure today. AAPL, GOOG, TSLA and MSFT are all trading down by more than 2.0%. These stocks are mega caps so they carry a lot of weight with sentiment and are a good gauge to what the mood is out in the market. Now let me be clear, these have been major winners recently and are somewhat overbought at the moment. Pattern will be very important going forward.

4. Gold is pulling back today trading down 0.85%. Gold is very overbought after its recent run higher. It remains in an uptrend and is the ultimate fear trade, so the pattern will be extremely important to watch.

5. Bitcoin is upticking today again. The daily chart still looks strong to me and should have another push higher in the near term. Unfortunately, the bigger time frame pattern remains weak and signals another sharp decline. Enjoy the rally now because it won’t last all that long.

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