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♟ Don't Let the October Stock Market Rally Fool You

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"The lesson here is that the market is in very unpredictable times."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

In a world where short-term traders hang on every word coming out of the Fed, yesterday's FOMC meeting and post-meeting conference call did not disappoint!

The market was expecting a 75-basis-point increase in the federal funds rate (the overnight interbank lending rate), and the Fed came through with that.

The bullishness of late October, which led to a 14% rise in the Dow for the month in spite of the anticipated rate hike, was predicated on one thing...

The Fed pivoting to recognize that it takes time for the results of rate hikes to be visible - just as it takes time for rate lowering to show up in the economy. This is called the "lag effect."

Chart:
 

Well, the Fed did just that. Here is what their statement said about future rate hikes:

See what the Federal Reserve said

How to Profit on Down Days

You've got to see this.

On days when the market is down big... while everyone else is losing their shirts... there's a way to collect wins up to 306% in just 24 hours.

Watch this video to see how the trade works.

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