Daily Alert – Thursday 25th August 2022: Is Powell about to boost equities?

Mark NugentAug 2022, Daily Alert

Daily Alert – Thursday 25th August 2022: Is Powell about to boost equities?

Good morning.

The markets remain reasonably quiet as the expectations mount that Fed Chair Powell will say or do something at Jackson Hole that will be significant. Maybe he will. From an equities point-of-view, I would say the risks are skewed to the upside. What I mean by this is that the likelihood is that Powell will reiterate his “data-driven-hey-let’s-not-have-a-recession” position, and this will be good for equities. Of course, he may not say anything of significance at all, which would have little impact on equities. What is unlikely is that he would go back to big rate hikes which would push equities down. Hence, the approaching situation is skewed to the upside for equities. It’s not 50/50. (It follows that the situation is skewed to the downside for the USD and US bond yields.)

My GBPUSD long is not behaving at all, and I may lose my capital. My WTI long is teacher’s pet and is doing very nicely…nice enough to cover the likely loss on GBPUSD.

We have a bank holiday in the UK on Monday so we will be back on Tuesday.

Have a great weekend when it comes.

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