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The entire stock market narrative changed on Wednesday following Jerome Powell's Brookings Institution speech. We've got our first sign that the Fed believes we could be at peak inflation and a surprisingly optimistic appraisal of our chances of a "soft landing" for the economy that would avoid recession.
Though we saw a bit of a pullback from the strong jobs report yesterday, I'd advise you not to worry about it. Ignore it. It's noise that created some momentary volatility thanks to short-covering, but the Powell narrative has a way bigger influence on overall market direction.
The key to making money in the current climate is to find the story that will dictate the movements of the big market-maker dealers, so that you can move along with the tide.
For example, if this wave of optimism follows with some reduced rate hikes from the Fed - say 50 or even 25 basis points - the market has a good chance of pushing through the resistance levels that have represented the ceiling for all previous bear market rallies this year.
If it does, things are going to take off.
To get the most out of this ride, click on the image below and catch the latest episode of my weekly show. You'll find out how this "narrative trading and investing" paradigm works, get the next story you should be looking for, and learn how to play it the same way the market-makers on Wall Street do.
I'll be back next week with more inflation-beating investment ideas and profit opportunities for you. Keep an eye on your inbox and have a great weekend!
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About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.