US stocks rose despite Powell’s speech

Wall Street rose on Tuesday

Yesterday has been a positive day for the US stock market.

All three major indexes have closed in profit.

The S&P 500 closed at +0.70%, the Nasdaq ended the trading session at +1.01% and the Dow Jones closed at +0.56%.

Investors are confident that the upcoming inflation data will be positive and they are actively buying.

Jerome Powell’s yesterday speech

The Federal Reserve president Jerome Powell has spoken yesterday during the Sveriges Riksbank International Symposium on Central Bank Independence in Stockholm in Sweden.

Mr Powell said that the central bank’s main focus is to cool down inflation by slowing economic growth through a series of interest-rate hikes.

While working and implementing its monetary policy to fight inflation, the Fed is trying to avoid big economic damage that can cause high unemployment.

Global economic growth slows down

Based on the latest report of the World Bank global economic growth is forecasted to be 1.7% in 2023.

The previous estimation of global growth released, in June 2022, was 3%.

The World Bank has significantly lowered the growth forecast due to the persistently high inflation and the possibility of a global recession.

Sentiment Indicator – Fear & Greed Index

The market sentiment is at 51 in the “Neutral” mode.

The investor sentiment is getting higher during the past few days and is going towards “Greed” mode.



FedWatch Tool – FED rates probabilities

78.7% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 21.3% are expecting a 0.50% rate increase.

The number of investors expecting a rate increase of 0.25% is a little bit higher than yesterday.

No other options are considered at this time.

The next FED meeting is on 1 February 2023.

Portfolio Update

I am monitoring the short positions on stocks and ETFs and I will act accordingly.

This will allow my portfolio to make a profit if the market drops.

My view remains bearish at the moment, based on the current economic situation and the current FED monetary policy.

However, I am aiming to make a profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.