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| JUNE 18, 2025It’s Fed Day! And right now, that doesn’t seem like too big of an announcement. It isn’t that long ago that every Fed Day was seen as a potentially massive catalyst in the market, but over the last few months, that feeling has shifted. Right now, traders are almost 100% certain rates will stay the same after today’s announcement: And even looking ahead to July, most folks still expect to hold steady: With that said, it’s still an important day for a few reasons. First, Jerome Powell can always rock the markets a little bit when he speaks, especially if he says something unexpectedly hawkish or dovish. If he hints at big rate cuts coming soon, then the markets are likely to be very excited. If, on the other hand, he suggests rate cuts are a long way away, the markets could react negatively. And that brings us to the second big factor which we discussed earlier this week: the dot plot. Released quarterly, the dot plot is the Fed’s collective projection for rate changes into the future. It will show us if the Fed overall is still expecting two rate cuts this year. If there’s a major change from last quarter’s dot plot, then the markets might respond accordingly. So pay close attention to the markets around 2pm ET today. It’s unlikely, but if you start to see a big move at that time, respond accordingly. Now, yesterday I mentioned trade ideas, and many of our traders are playing it pretty close to the vest this morning to not dive into the potential volatility in the markets this afternoon. But Lance Ippolito has released two trade ideas in his programs this morning chasing short-term moves on bank stocks. In his Warped Options strategy, he’s trading Citi (C) with a debit spread. But I chose to take an even simpler trade that he sent out to members of his Quick Flips trading strategy. Buy to Open BAC July 3rd, 2025 exp $45 strike call at market. As Lance explains, bank stocks are firming up ahead of the rate announcement, and BAC has been showing relative strength. This trade gives us some “time to be wrong” (with a July 3 expiration) but also a chance at a “quick flip” on a big news announcement. I bought one contract for about $95. Interested to see how it goes. To your prosperity, Stephen Ground Editor-in-Chief, ProsperityPub P.S. If you still haven’t claimed your FREE access to Nate Tucci’s brand new Income Machine, click right here. |
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ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. |
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