Hey There Income Hunters,
If you’re new to Power Income, then you may have missed my call a few weeks back on a massive market pivot from inflation to disinflation.
It’s funny, because right before Jerome Powell admitted how wrong he was about inflation’s transitory nature and committed to fighting it … inflation had already peaked.
The Fed is just so far behind the curve, and this is a common occurrence in history. You will never see our central bank make a proactive move.
Now, if you are in tune with Fed policy and how it reacts to markets, you can get out in front of powerful flows and ride them to huge profits.
This is what my Power Income Trader program does for you.
I have made millions of dollars in my career trading based on trends driven by Fed policy.
And I recently alerted subscribers of a Fed policy shift that was bearish for markets – and hit numerous winning trades.
You see, the Power Income Trader Policy Gauge is flashing red and that signals a shift from inflation to disinflation.
Today, we’ll take a look at the money flows, and I’ll show you how off-sides the Fed is.
Money Flow is EVERYTHING
Especially Fed and US government flow.
When you hold the keys to the printing press and can print new money into oblivion, you control the flow.
As a trader, if you can get Fed and government policy right, you can get out ahead of their powerful flows and exploit their hidden agenda.
My Power Income Trader system uses fed and government data to determine its impact on the markets. (It’s part of an easy four-step process that is cranking wins at a 75% clip.)
It accurately reflected the Fed’s extremely bullish positioning since COVID and also recognized the shift as policy that signaled a pullback in stimulus.
The Fed’s Incredibly Hawkish Pivot
Here is a perfect example of how the Fed can flip-flop at any time …
J-Pow doubled down over and over again on transitory inflation while Power Income Trader was going long commodities and energy, which are the top buys when inflation is accelerating.
However, now that the Fed has come around to admitting inflation is a problem, the Power Income Trader system has flashed red and signaled a disinflationary environment.
The recent trades have been bearish strategies in the broad indexes … when the Fed is fighting inflation that has peaked as commodities and energy have turned sharply lower but are not in bearish trends.
For instance, check out the Lyxor Commodity CRB ETF:
Tightening Into a Soft Patch
Tightening into a growth slowdown never works out well, especially when consumers are suffering from higher prices for essential goods and services.
Because the scenario forces households to take on more debt, raising interest rates and removing stimulus at this time can be a serious policy error …
With numbers like these, a new pivot back to stimulus may not be far off.
Bring It Home
The Fed always makes it interesting.
And when you have confidence in the macro drivers – mainly the debt burden and knowing the Fed only has one solution (inflation) – your trading decisions become a bit easier.
On Tuesday, I’ll go LIVE with trades that will work in Q1 2022. Join me!
Until then …
Live and Trade With Passion My Friends,