Daily plan 9.15.23
Markets Close Higher in Line with Expectations - What’s Next?
Good evening, readers!
What a remarkable day we experienced! Once again, the Emini and Nasdaq showcased exceptionally strong upward moves, hitting both long targets provided the previous night. Oil also observed a significant rise, reaching my target before settling for the session. The accuracy of these three, in terms of performance relative to the projected levels, has been nothing short of astounding. Contrary to many expectations of a sell-off due to the uptick in CPI and PPI, we witnessed none of that!
Numerous stocks within our plan yesterday hit their long levels at the day's low, generating substantial upside. Throughout this week, we've repeatedly observed minimal to non-existent downside below the long levels. This consistent performance has made trade execution and adherence incredibly straightforward. When the price immediately moves in your favor, it not only provides peace of mind but also ensures clarity in decision-making. At no point today did we doubt or question if the prices would revert downwards.
A prime example of a stock that many misjudged, except for myself, is TSLA. I delved into the reasons why its price reductions would be bullish, drawing comparisons between past sales and current trends. Take a closer look!
The inventory for Tesla's Model X and S has been halved, aligning perfectly with my prediction—truly an impressive forecast. Since this development, Tesla's stock has surged, climbing back to its peak levels.
If we were to witness any selling as a consequence, it would likely hinge on how the Federal Reserve interprets and responds to this data in the upcoming FOMC meeting. A major point of concern for them is the escalating oil prices. Drawing parallels with historical trends, especially from the 1970s—a period I've discussed in detail over on platform X—we can identify striking similarities with our current economic landscape. A notable instance from that era was the strategic maneuver by OPEC to reduce oil production, which was perceived as a direct challenge to the US. This historical precedent serves as a vital lens through which we can view and analyze present-day market dynamics and geopolitical strategies.
During the 1970s, the U.S. experienced a period of high inflation and economic stagnation, often referred to as "stagflation." Several factors contributed to this situation, and the Federal Reserve faced various concerns and challenges in addressing it. Here are some of the primary concerns of the Fed during this period: