Hey traders,
So the Fed made their long-awaited announcement today.
But as I’ve said before, did anything really change?
Sure, there was a bit of a pop right after the announcement. All three indexes did it.
And with the SPY and DIA already hovering near their all-time highs, it gave both enough of a spike to hit new highs today… before they quickly retreated right back to where they were before the announcement.
Basically no change despite all those eyeballs watching Powell and hinging on his every word.
It’s like I said the yesterday: ignore the Fed and trade your plan.
Not only does Powell not know what he’s doing (that’s a topic for another day), but all this weight traders put on these decisions is a waste of time.
Why?
Because if you have a winning strategy, the Fed announcement — and other time-wasters like it — don’t really change anything.
Take the ANET trade I entered today, for example.
I didn’t enter it because of anything the Fed did.
In fact, this trade was on my calendar for months… maybe even years!
I’m not kidding when I say that.
See, I traded ANET this week because it has a history of popping every year around this time.
It’s a little thing called seasonality. Certain stocks pop on certain dates every year, like clockwork.
So, this ANET trade was on my calendar long before — and in spite of — anything the Fed was going to announce.
And guess what? Just like the major indexes, ANET had a quick little pop right after the 2 p.m. announcement… and then came right back to where it was before.
A small, temporary blip that doesn’t change anything about our plan.
Now, with this trade, we just need ANET to stay above $327.50 by next Friday, the 27th.
With the stock trading at $361.71 at today’s close, that would be more than a 10% move down.
That would be a huge, and very unlikely move.
And while no one can predict the future, based on ANET’s history of popping around this time every year, I think we’re going to walk away with a cool 12% win in just 7 trading days.
That’s what I mean when I’m always barking, “Ignore the Fed!”
Traders waste too much time watching Jerome Powell and not enough time finding and sticking to a winning strategy.
So, here’s my advice: Focus on what works.
Find those trades that you can count on, time after time, like my seasonal plays with ANET.
Let everyone else chase the latest Fed headline while you quietly collect your wins. That’s the way in this game.
By the way, ANET isn’t the only stock that pops at a certain time of year, every year. If you want the next 10 tickers I’m watching for this, check them out right here.
Because when you’ve got a strategy that works, all that noise doesn’t matter. Stick to your plan, and the profits will follow.
Trade well,
Jack Carter
