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What To Expect Next After Powell Whacks The Market


This morning, while taking a quick peek at my emails, I found several messages from people who became worried after reading my article yesterday.

“Do you think Powell will really stick to his guns, no matter what happens in the market?”

“Other analysts are saying the Fed is going to change course regardless of what Powell said, what do you think?”

“I’m worried, should I sell my positions?”

These 3 questions represent about 85% of the questions I received. This also highlights one of the perks of joining the Options360 community. Every member gets a directly line to me and can ask me anything.

But, as to these questions…

I received a lot of that last one, and I am going to address it first. I NEVER give out personal financial advice.

If you are thinking about selling everything, you need to consult the proper licensed experts that you work with and discuss your options.

All I’ll say is that in my entire adult life, I have never been truly out of the market. I’ve had larger cash positions at times, but I’ve always been active.

However, you and your trusted advisors have to decide what’s right for you.

As to what I expect Powell to do, the truth is I don’t know.

I’m not in his head nor in the room with him, and frankly the deep mechanics of the economy are a bit above my head.

All we can do is take him at his word and watch and see what he does. In the meantime, we need to trade what the market puts in front of us…

Not what we wish to be.

I know I pound the drum about this a lot, but I refuse to take part in macro speculation when it comes to trading.

I am a news (and mystery novel) junkie, and like most news junkies I have my opinions. However, my opinion and $10.88 will get you a coffee drink at Starbucks.

So here’s my direct answer.

It doesn’t matter whether Powell sticks to his guns or changes course. All that matters is that we trade the technicalsmanage risk, and take profits where and when we can.

Anytime we take profits it’s a win. Conversely, anytime we exercise proper risk management, thats also a win. Whether we are making a bearish trade, a bullish trade…

Whether we make all the profits we “could have made” on a trade… Whether the market is good or bad.

We focus on finding profits, and if none are to be made, make sure our losses don’t outweigh our winners.

That’s why Options360 is up over 20% when most other services, 401k’s, mutual funds, etc are down big for this year.

We don’t trade philosophy or hope, we trade the market…

When you’re ready to learn how to trade options properly, we would welcome you joining us.

Member or not, always remember… I’m rooting for you.

To your success,


Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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