Submitted by Fun-Director-3061 t3_11wuzgh in wallstreetbets
To all the beginners that have just recently started trading as well as the bunch of you regarded enough to trade without having a good grasp of our current economic situation, I would recommend the following documentary as a must watch: https://www.youtube.com/watch?v=EpMLAQbSYAw
That being said, I believe that we are currently at a tipping point regarding this year, much similar to Jackson Hole in 2022. On the last Fed hearing we saw real pressure put on JPow to ease rate hiking in order to avoid millions of people from losing their jobs, and while JPow seemed stern on keeping course, the recent SVB and Credit Suisse bankruptcies definetly tipped the scale. The Fed has lent $300 billion to troubled banks this past week, undoing much of the QT last year. While these events should've caused reactions throughout the markets, we've seen a relatively mild moves. This leads me to believe that the FOMC on Wednesday will wreak havoc on Wall Street. I see it playing both ways:
- Fed announces that they will keep raising rates, which could trigger a crash in the short term.
- Fed announces that they will stop raising rates, and everyone goes apeshit buying, only for the market to pullback in a weeks time.
I think scenario 2 is much more likely, so it's calls all the way. However, I don't want any of you regards holding the bag for too long(Probably won't be a problem since most of y'all play 0dte anyway).
Please tell me how I'm wrong