Later today, the Fed's decision will give direction to the market. Many are hoping for a pivot. Some believe a pause is in the cards. The Fed could pull the rug out as it seeks its true aims, which are never announced. They may go up again by another quarter point just to prove that they are independent and fight the inflationary forces that they created. When you look at their history, a concept by a greedy, manipulative JP Morgan or sincere men like Jefferson and Franklin, can you see why we say, "End the Fed!"
We, at Evolution, stick by our call last year that our economy is already in a "stealth" recession. When you look at inflation, it moves from sector to sector. Each sector's higher price hurts someone or company. When we look at the market indexes, we see the indecision of investors due to the Fed, geopolitical concerns, the dollar, higher interest rates, and earnings. The charts reveal...
Dow is at resistance (34500). Interestingly, this coincides with today's Fed decision.
Transport is still in a downward trend.
S&P 500 is at resistance.
NASDAQ has rallied, but it has a long way to go to reach resistance (13000). Actually, it is closer to continuing a downside move rather than an upside swing.
IWM, the small caps are weak.
Oil is in a huge consolidation pattern.
Second Opinion
Leon Cooperman says, "The S&P 500 will not hit a new high...for a long time." He worries about our banking system. In related news, Moody's has downgraded 11 regional banks.
Continuing Worry...
about King $Dollar. The IMF has gotten into the fray. It is introducing the "Unicoin." It is now in use. Strangely, it is not a currency, but acts like one. It is being used to settle transactions. It is acting like a "monetary commodity." This is another nail to dethrone King $Dollar.
We worry that the IMF is seeking to become the "world's" central bank. This plays into the One World concept and danger for our nation.
Back to the Fed
The vice chair for bank supervision at the Fed, Michael Barr says, "The Fed did not do a good job of supervising smaller banks." He goes on to say that the Fed needs to do a better job. He does not mention the fact that the Fed ended all reserve requirements in smaller banks which allowed greed to determine their actions.
The biggest retailer, Amazon says it sees lower future sales and Walmart continues to lay off people. Every week there are new firms announcing layoffs. Remember the old Wall Street slogan, "Sell in May and go away!" Peace.
