For context, the SPY is the world’s largest and oldest ETF.
It’s designed to track the S&P 500 stock market index.
And the recent surge to $470 is a refreshing reminder that investors and traders will ALWAYS react positively to the kind of news they want to hear…
Creating new opportunities you can harness if you look in the right places.
For example, take the idea of zero interest rate hikes.
Ever since the Federal Reserve paused its rate hiking spree in July…
Bulls have been predicting potential rate cuts relative to lower inflation.
In other words, you didn’t need a 200/IQ to know if the Federal Reserve stuck with its decision to keep interest rates steady for the third consecutive time… (which happened at their latest meeting on December 12-13)… Then, the news would light up the charts like firecrackers at a Fourth of July Barbecue.
This is why it was easy for me — and anyone who understands how market sentiment works — to forecast the SPY’s surge to $470 one week in advance.
And I hope you’ve been keeping up because following Fed Chief Jerome Powell’s recent announcement, the SPY rose to $470.76, and it was an excellent opportunity to make good money whether you bought call options or sold a put.
It’s now at $469.33 but still delivering gains we haven’t seen in two years.
So it’s not too late to do what is needed and get in on the action.
Especially since the FOMC Committe has projected at least three interest rate cuts in 2024, and the market’s reaction has been very positive so far.
The Dow Jones Industrial Average hit a new all-time high.
The S&P 500 Index is up 23% this year (a new 52-week high).
And the tech-heavy Nasdaq is up 40% year-to-date (8% shy of its 2021 high).
In general, the market is in a fantastic spot right now.
But nobody knows how long this trend will continue. So, if you’ve been watching from the sidelines, now is an excellent time to book end-of-year profits.
For more insight, see how we book profits in the top three stock indexes.
Wishing you a blessed and profitable day,