Andrew Gilbert: Don’t Fight the Fed
Tom welcomes Andrew Gilbert back to the show to discuss the markets. Andrew is the Founder & Lead Technical Analyst of Sniper Trading.
Andrew discusses the effects of the Fed on the markets and how tightening is creating capitulation events in equities. The Fed affects the volatility while remaining the godfather of the markets. Markets are likely to stay volatile, and only lower is where we are heading until the Fed starts adding liquidity.
We’re in a short-covering rally where institutions clear out positions. Institutions are taking profits, and we’re likely to see this rally run out of steam. Andrew compares the current markets with those of the 1970s. We’re seeing similar market structures. Expect another break to the downside.
It will be interesting to see how committed Powell remains and when they will choose to pivot. We might see action at the thirty percent correction level based on past actions. The pivot will likely depend on the inflation numbers.
The VIX volatility has been increasing, and it’s usually correlated with the S&P.
He discusses the potential catalysts for gold and silver. Most likely we will have to wait until the Fed pivots, which will allow the metals to move higher.
Andrew discusses the nearly 1 to 1 correlation between S&P and Bitcoin. He expects a further decline in crypto markets. He believes there will likely be other alt-coin collapses like what we’ve seen with Luna.
Lastly, he discusses the bond markets and what to expect with bond yields. We should see another three to six months before yields break down.
Time Stamp References:
0:00 – Introduction
0:39 – Fed’s Importance
4:13 – The Recent Bounce
7:14 – Powell Intervening?
9:57 – VIX Usefulness
13:30 – Gold & Silver
16:52 – Bitcoin Call
18:42 – Crypto Leverage Risks
20:22 – Bond Yields
22:27 – Wrap Up
Talking Points From This Episode
- Why the Fed remains the key to markets.
- The current rally and why it won’t hold.
- The direct correlation between Bitcoin and the S&P.
- Expectations for bond yields.
Andrew is the Founder & Lead Technical Analyst of Sniper Trading. Sniper Trading is an exclusive discord community that provides daily trade setups for crypto, stocks, and metals. They also provide portfolios and education to improve your technical analysis skills.