March 22, 2023

Markets:

Stock futures were slightly lower Wednesday as investors braced for the Federal Reserve’s next move in its inflation-fighting rate hiking plan.

Investors are looking forward to the latest update from the Fed, at the conclusion of its two-day policy meeting on Wednesday. Most investors expect the central bank to stay committed to its tightening and raise rates by 25 basis points.

As of Wednesday morning, there is about an 85% chance of a quarter-point increase by the Fed, according to CME Group’s FedWatch tool. Meanwhile, there’s a roughly 15% probability of there being no hike.

The European Stoxx index opened flat on Wednesday before nudging 0.15% higher.

Gold prices have more room to spike as global banks struggle and investors await the U.S. Federal Reserve rate decision, and could go as high as $2,600 per ounce.

Portfolio:

We enter Fed day holding one set-up in BAC. Great day yesterday.  It's all about the Fed and what their decision is on hike or no hike. How that markets responds not just today but tomorrow morning will be key.  We love Fed day and the trend it sets.  Be ready and stay patient.  No reason to front run the Fed move unless a monster set-up forms.  Let's have a great session.