Stock Market = Upcoming Opportunity

Market Insights, Government Shutdowns, FOMC Recap, and More

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Simplify Wall Street
September 24, 2023

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Government Shutdown Pending

The upcoming government shutdown is a big deal for our country. It will cause a lot of problems and affect many various entities. Important services like national parks and government offices will be disrupted. This will be tough for federal workers who might lose their jobs temporarily or have to wait for their paychecks. This also shows that Congress is divided on important issues.

The government's goal should be to avoid a shutdown because no shutdown keeps the government running smoothly, helps federal workers, and keeps our economy stable. A shutdown doesn't just affect politics - it affects your everyday people.

What jobs are available if a shutdown occurs?

Well, the stock market is always hiring. Our newsletter encourages you to think and plan. We are not saying you need to become a trader. Still, by considering economic trends and job availability in recession-proof sectors, one could find ways to bring in extra income.

Understanding stocks, bonds, and financial markets is important for both personal finance and career opportunities. Knowing about these financial instruments helps individuals make smart investment choices, plan for the future, and build wealth over time. It also opens up various job options in the financial industry, such as investment banking, asset management, financial analysis, and trading. Understanding these concepts helps individuals secure their economic well-being and prepares them for a changing job market.

FED Meeting - FOMC Recap

  1. Chairman Jerome Powell-led FOMC kept the interest rate unchanged.

  2. Achieving a smooth economic transition will be challenging due to higher interest rates and increased borrowing expenses for businesses and individuals, ultimately slowing down economic activity.

  3. The committee expects the central bank to keep raising interest rates until it reaches a final rate of 5.6%, which was already predicted in June.

  4. According to the Fed's "dot plot," 12 out of 19 FOMC members believe there will be one more rate increase by the end of 2023.

  5. U.S. Fed Meeting Live: FOMC to meet next on Oct-Nov 1

    U.S. Fed Chair Powell-led FOMC will now meet on October 30 - November 1 to deliberate on the next policy decisions.

New to the world of Wall Street? Let’s start with the basics.

What/Who is the Federal Reserve?

The Federal Reserve is the central bank of the United States and is seen as the most powerful bank globally. It is commonly called the Fed and was created to control money policies and oversee the financial system. A board of seven members manages the Fed and has 12 banks spread across different regions in the U.S.

Here’s a free stock market finance terminology cheat sheet that will make you a savvy financial virtuoso.

Fed Moves

Fed pulled -$50B emergency OCE liquidity

Definitions: Other Comprehensive Income (OCE)

  • In business accounting, other comprehensive income (OCI) includes revenues, expenses, gains, and losses that have yet to be realized.

What does this mean in its simplest form?

  • The Federal Reserve decided to take back $50 billion in emergency funds it had provided to banks in a week, suggesting that it believes the financial system is stabilizing or may be preparing to raise interest rates.

Good or Bad?

Good thing:

  • Economic Stability: If the withdrawal of emergency liquidity signals that the economy has improved and is more stable, it can be seen as a positive development. It suggests that the need for extraordinary support is diminishing.

  • Normalization: Reducing emergency measures can signify a return to more normal economic conditions, which is generally considered positive.

Bad Thing:

  • Premature Tightening: If the withdrawal happens too early or abruptly and the economy is not fully recovered, it could harm economic growth and stability.

  • Market Reaction: The market's interpretation of this move can vary. Sudden policy changes can sometimes lead to market volatility and uncertainty.

Ultimately, the impact of such a decision depends on a multitude of factors, including the state of the economy, the timing, and the communication surrounding the decision. It's something that central banks carefully consider to balance the goals of economic stability and growth.

Get Stock Picks & Daily Analysis

Our Stock Picks & Alerts

Green = bought | Orange = Profit/Loss

Our golden play was $SPY and E.S.

$50 a point. We gained 10 points from 4510 to 4500. Equals $500 per contract

Our $SPY puts were bought at 1.00($100) and actually traded to 5.00($500) before we sold. We bet it traded to 440, which went as low as 430.

More $SPY puts were bought for $130 and sold for $270. We had many layers.

After swinging over the weekend, $TSLA gapped and traded 25 points higher. Results below.

Sold remaining contracts that were bought for $465 at $1,200 for a profit of $735 per contract

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E - mini Short Position.

We shorted 4537 and took profits at 4507. That’s a 30-point move, with each point equalling $50 a point. That’s a total of $1,500 per contract.

Others Mentioned In Elite Insiders or via Trading Chatroom

$NVDA, $NFLX, $AMD, $SPY, $MSFT, $TSLA

Fun Fact. Did you know? 💡

Over 90% of individuals prioritize businesses with innovation and growth potential when making investment decisions.

Upcoming this week!

THURSDAY, SEPTEMBER 28

  • 8:30 am Initial jobless claims

  • Sept. 16 (Expected = 206,000 | Previous 201,000)

  • GDP (revision)

  • Q2 Data (Expected = 2.3% | Previous 2.1%)

  • Powell Remarks

FRIDAY, SEPTEMBER 22

  • 8:50 am PCE Core index

  • Expected (2.3%) Previous (2.1%)

Stock Picks & Weekly Levels 📝 

Top Large Caps That May Lead.

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Key Pivots

For lower levels like 4180-4200, levels like 4330 need to give in. Though this is possible, support may be held early in the week. 4330 is key to the downside.

  • We could see further selling if the market opens below 4350 and treats it as resistance. Otherwise, if 4350 remains supported, we could test 4410.

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