Tom’s Weekly Newsletter May 19, 2021

Posted in Newsletter

By: Tom Gentile on May 19th, 2021 • 2 mins read

- - -

TRANSITORY.  Definition: Temporary, Not Permanent

That is the word heard most of the time when the Fed talks about inflation.  Or the word used by people recapping what the Fed has to say about the prospects of inflation.

For now, it seems the central bank is going to keep monetary policy accommodative due to the pandemic and even with our economy opening up more and more.

Fed minutes showed some members of the rate-setting Federal Open Market Committee were, let’s say ’having discussions’ on the possibility of tapering or around WHEN to taper the Fed’s near $120 billion a month asset purchases.

I read where one analyst says their firms view is tapering will be discussed around August/September this year, with a formal announcement in December.  And that announcement could be that tapering will commence in the first quarter 2022.

The sell off today is credited to the selling off of Bitcoin and crypto and if so this could be a great buying opportunity for some.  Online articles are popping up everywhere today giving their reasons for that assessment.

Though I feel that could be the case, I am not going to just blindly start opening up bullish option positions.

I am going to continue to monitor my scans, look for ideal technical pattern setups and then find the acceptable risk, appropriate probability patterns I can find and then look to initiate trades.

And teach you all along the way how to do the same.

Tom Gentile

C1P Chief 1-Percenter