ALERT: Federal Reserve Cancels Rate Hike?!?

An interesting series of events right now. The market is reacting to now the probability of a rate cut instead of a rate hike. What changed? Let's go ahead and talk about it. What's going on, guys? It's Ricky with Tech with Solutions. Hope that you guys are all having an amazing Friday. NASDAQ market is up 1%. What could the markets be celebrating? Let's make it very simple to understand. Again, second link in the description down below. No, I'm not going to talk about LPP. If you scroll down, we have an economic calendar you guys all should have access to. The thing that I want to show you today is the economic report that was released. Non-farm payrolls, how many jobs were added? 23,000 jobs were removed. There's an expectation of 85,000 jobs that were expected to be added. The unemployment rate is actually uh kind of contradicts itself, lower than what was expected. But private non-farm payrolls, we actually see that 30,000 jobs were added when the expectation was 78,000. The biggest thing that everyone is talking about right now is non-farm payrolls. Well, why is bad job reports good for the market, right? Is it the bad news? Is good news? Again, let me explain, right? Markets have been uncertain, right? We've been talking about it that even Kevin Walsh who's the head of the Federal Reserve and many other Fed members have talked about, hey, inflation is rising and if inflation continues to rise, we might have to hike rates. Remember, raising interest rates is not bullish for the market. This was the sentiment just yesterday and the days prior. What got reported today? Well, if we pay attention to what got reported, it's the unemployment rate. It came in a little bit better than what was expected. Not bad. But the US economy lost 23,000 jobs when it expected to add 80,000 80,000 jobs. The issue with that is that remember Jerome Pal who's the previous Fed called it a double-edged sword. You can't put out one fire of inflation, rising inflation by raising interest rates, right? You can try to help inflation, but in return by raising interest rates, then you're going to also weaken the labor market. So now that the labor market is so weak, now it really kind of begins to ask the question, is it worth it to raise rates if the labor market is already so weak? Do you see? Right? That is how bad news can be good news because the market doesn't want rate hikes. They want rate cuts if anything, but they'll take a rate pause at this point. uh a weaker labor market puts the Fed in a position where they are less likely to just willingly raise rates because of how it would have negative implications and worsen the labor market. If the labor market becomes more of a pressing issue and inflation is not where we want it to be but again something that we can work with then at that point they are likely to prioritize the labor market and therefore no longer raising rates. Why is the market moving up today? Because again, the likelihood, the probability of an interest rate hike just dropped, which is again celebratory for the overall market. Without further ado, I also need to make sure that again we talk about not just our green days, our red days. One of the trades that I took today within my LPP team, right? Just like I talked about my two trades yesterday, Palunteer and Airbnb, um I made what was it? $2,000 on Airbnb, $6,000 on Palunteer, $8,000 day. Uh today, took a bad trade on Palunteer, opened up a short position a little bit too early. I still think there's a huge gap down potential if if markets begin to sell off, which again, it's still a big if. So, it's in the very early stages. I still have not added more to my position and do not plan to add more unless we begin to get an active drop. But with markets being so resilient, again, we really have to see if we get that overall reversal. Surprisingly, the chip stocks right at market open actually began to show more signs of selling pressure, lower lows, lower highs. And that wasn't just with Micron, but that was also with SanDisk, and that was also with Western Digital. Again, the chip stocks are taking a beating, but I think a lot of that is coming from the uncertainty of the South Korean market. And again, I'm just here to plant the seed and to talk about the news. Remember, the issue that is unfolding in the Japanese market is not good. Japanese bonds are going parabolic. The two-year yield just hit fresh multi-deade highs. Remember, the yields are the price, the interest that the Japanese pay on the money that they borrow. The higher the yield, the more expensive. This is like August of 2024 where the um carry trade began to kind of unfold. So, just be careful. This is still a pressing issue. Although Trump might not be talking about it, US Treasury um is is stepping in and trying to help the Japanese market. The reason why is because Japan is one of the largest foreign holders of US bonds. So if they are put in a position where they have to start selling US bond yields or US bonds, our yields begin to go even higher. And the US doesn't want that. So that is why that they're intervening. And I think it's one of the first times in the past 28 years that they've had to intervene and that is because again there is so much uncertainty unfolding in the Japanese market. We'll see how this continues to develop but as of right now it looks like it's a small win for the overall market uh intraday right it's something that the market is celebrating. So if you are asking the question why did markets push up they pushed up based off of the drop in probability that the Federal Reserve will be raising interest rates. So, it's it's less likely for them to do so now. So, we'll see how things continue to develop. Again, I'll continue to do my part in keeping you guys up to date. And congrats to some of our SpaceX investors. Right. Look at that. SpaceX, who would have thought, up 13% on the day, almost back to IPO highs. But again, extreme volatility comes with extreme risk. Please be very careful. If you think that it's reaching overbought levels, don't be afraid to invest, but definitely don't use leverage, right? Watch your exposure and when in doubt, never be afraid to cash out if your intention was to trade. If you're invested, then strap in for the roller coaster ride. I appreciate you guys' time. Again, I hope to see you for our live trading session, right? You guys have all weekend to begin to catch up on the course material. LPP 3.0 onetime payment, lifetime access. You guys get $2.99 off. Uh, as of right now, it's the second link in the description down below. If you want to preview a recent live session even before you join, I would encourage you to do that. Watch a previous live session for free so you can get exactly an understanding of what to expect. And if it ends up being something you want to be a part of, great. You get a discount on it. Deal 26 gets you $2.99 offetime payment lifetime access. And you'll also get to watch me trade live every single day. So again, that's the second link in the description down below. I appreciate you guys' time. I hope that we're in a thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note.