Daily Alert – Thursday 23rd September 2021: Fed signals November taper, rate hike in 2022

Mark NugentDaily Alert, Sept 2021

Daily Alert – Thursday 23rd September 2021: Fed signals November taper, rate hike in 2022

Last night the Fed indicated it would probably begin to taper bond purchases in November, ending in mid-2022. The famed dot plot shows for the first time most Fed voters believing there will be a rate hike in 2022. The markets were calm with none of the “taper-tantrum” seen previously when QE was withdrawn.

The Evergrande situation in China that has caused the recent market sell-off seems to have abated for now and the immediate interest payments the company is required to make are covered. This is not over.

My second bite at S&P500 long is doing well, almost at 2x risk in the money.

At lunchtime today, UK time, we have Super Thursday from the Bank of England. It will be interesting to see what Governor Bailey has to say about the long list of issues facing the UK economy. As I mentioned yesterday, I am close to changing my fundamental view of the GBP to bearish. I will decide over the weekend and talk about it on Monday.

That’s it from me. Have a great weekend when it comes and I’ll be back on Monday with your Trading Plan for Week 39.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE