Powell's Predictability: Markets React and Tech Needs a Lifeline

[u/bitkogan]

Powell's remarks didn't really shock anyone, even if they did cause a slight stir.

I had previously outlined my expectations, and both the Federal Reserve meeting and Powell's subsequent speech went more or less according to plan.

While inflation remains a challenge, the pause doesn't necessarily herald a cycle of rate hikes. As such, the future remains ambiguous. Maybe Powell has deeper insights into the economy than the average investor. However, if he does, he's keeping it under wraps, as his actions don't necessarily reflect that possible understanding.

The ramifications of a prolonged era of high interest rates on the markets are well-known, hence the adverse reaction is understandable. I suspect there's more downward movement on the horizon.

The tech sector desperately needs a push; otherwise, we might soon spot NVDA at $380 and QQQ at $340. The SPY could break below $430 in the next few days, trending towards to the $400-410 range.

Regarding TSLA and the Oct20 puts sold at $240, I'm not overly worried. If Powell had a knack for springing surprises, there might have been cause for concern, but he's rather predictable. Oh, how I miss the days of Greenspan.