Daily Alert – Thursday 2nd November 2023: Little appetite for hikes at Fed, BoE

Mark NugentDaily Alert, Nov 2023

Daily Alert – Thursday 2nd November 2023: Little appetite for hikes at Fed, BoE

Good afternoon.

The Fed surprised the markets yesterday. Not by holding rates at 5.5%. That was expected. But by Fed Chair Powell alluding to there being doubt over the need to hike again as the increased and increasing bond yield is doing some of the Fed’s work for it. Equities rose and are still rising. The USD fell. Both moves are to be expected when the market perceives relative dovishness.

Today, over at the Bank of England, the rate was left unchanged at 5.25%. Again, there was the perception of the bank being less hawkish than expected. The UK economy is stuttering, and some feel another hike is needed like a hole in one’s head.

I went long on S&P500 as there was solid buying into the close after Powell’s comments. The index is still rising, almost 1x ATR in-the-money.

I’ll be back tomorrow with brief videos of each of the three trades closed last week.

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