Gareth Soloway: Bond Markets are Calling Powell’s Bluff
Tom welcomes back Gareth Soloway, President, CEO & Chief Market Strategist for InTheMoneyStocks. Gareth addresses the uncertainty in the market and how everything is moving inversely to the dollar.
The Fed is being aggressive, and they may back off once inflation improves, but recession fears build.
He shows how the USD/Yen is indicating the possibility of a dollar pullback. The dollar has been dominating the Euro, but Natural Gas is showing a price drop over the past few days. It’s possible the gas situation with Russia isn’t as bad as many expect. The Fear seems to have subsided over the weekend, and we are seeing a reversal. The dollar has pushed too hard too fast and therefore is likely to reverse for a while.
Bonds aren’t reflecting the concern that the Fed has been expressing. The smart money is betting the hikes won’t be as big and is calling the Powell’s bluff. Gareth hopes the Fed will only hike another 50 basis points. He hopes they are being careful and are focused on the inflation numbers.
A recession seems likely even if the Fed moves more dovish. A recession will be the cause of the next leg down in the markets. Downside targets are the pre-covid highs in the markets. An even lower retest is quite possible. How does the economy get out of recession once it begins. We could have all out panic in the markets.
Gold has been performing quite well this year, especially compared to other currencies and markets. Gold is only down four percent despite the dollar being up over 15 percent. This is very bullish for gold. When the dollar really starts to drop, gold will take off. Metals are the safest place to be, particularly gold. Silver is also at a great level right now, perhaps near a major bottom with excellent technical support.
Miners have been hit hard due to inflation and their input costs. Should inflation come down and the Fed pivots, then miners will outperform.
We’re on the precipice of a global recession. Longer-term, Russia and OPEC may have miscalculated, as Europe will try to become energy independent.
Bitcoin investors have to keep in mind that this bear market isn’t being backed by Fed printing.
It’s important to monitor your emotion and consider where everyone is at on trades. The same patterns repeat over and over in markets.
Time Stamp References:
0:00 – Introduction
0:58 – Market Uncertainty
1:58 – USD Safety?
3:30 – USD/Yen Chart
4:12 – Euro/Dollar & Nat Gas
8:06 – The Fed & Bond Markets
9:17 – Recession & Employment
10:27 – Fed & Market Targets
15:22 – Gov’t & Central Banks
17:27 – Metals Performance
20:16 – Gold & Silver Support
22:00 – Miners & Sentiment
23:29 – Oil, OPEC, & Inflation
25:58 – Wages & Inflation
28:02 – Bitcoin Limbo
30:07 – Emotional Regulation
31:47 – Wrap Up
Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University, where he studied Economics. After college, Gareth quickly excelled as a financial adviser, but his heart was always in swing and day trading. He had this long-standing belief that he could help investors make more money by advising them on shorter-term investments (holding a stock for days to weeks) than the buy and hold crowd who lost 50% of their money during every market collapse. “Why not profit during the bear markets just like the bull markets,” he said. So while helping others gain financial independence during the day, he spent his nights studying charts and price action, developing a unique market trading system that put his profits on a rocket ship. Some nights he would barely sleep when he found a new technique that was proven, once back-tested.
After building his wealth through trading in 2004, he left the financial industry to trade his own money and study charts and technical signals. This was when he met Nicholas Santiago. The two top traders spent days trading stocks/futures together, and nights putting their collective brainpower into the pure genius that would become the PPT Methodology.
InTheMoneyStocks was launched in 2007 once the PPT Methodology was perfected. Gareth’s goal was to help average investors beat the best hedge funds and traders on Wall Street by teaching them the methodology and giving them his trades as he took them LIVE!
Since 2007, Chief Market Strategist Gareth Soloway has maintained an over 80% success rate on swing trade alerts (verified 300+ trades per year) given to members in Verified Investing Alerts (formally named the Research Center) and a confirmed 94% success rate on day trades in the Live Day Trading Chat Room. He has given lectures at colleges around the United States, been asked to train hedge fund traders in other countries, and taught thousands of investors how to invest and trade profitably, achieving their dreams of financial independence. He lives life to the fullest and puts his heart and soul into teaching his members who come willing to learn the PPT Methodology.