HUGE VOLATILITY INCOMING!
Next week's timeline is probably the most important, and you should be prepared for it.
Starting with the US-Iran war, a huge US military airlift to the Middle East is happening.
Meanwhile, President Trump has cancelled US negotiation talks with Iran.
This is a sign of escalation, and maybe renewed strikes could happen.
The last one resulted in a 70% pump in Oil and a 10% dump in the stock market.
If strikes happen again, the consequences on oil supply and markets will be even worse.
The 2nd event is the Fed interest rate decision, which will happen on Wednesday.
The expectations are of a rate pause, but the most important thing here is Powell's Press Conference.
The Powell term is ending next month, so this could be his last press conference as the Fed Chair.
Given that energy prices are still elevated, Powell could continue his hawkish tone.
On the same exact day, 4 of the biggest US companies will report their earnings.
Microsoft, Amazon, Alphabet and Meta.
Also, Apple will release their earnings on Thursday, which makes the next week really crucial.
If these companies show any signs of slowdown, markets won't like it.
Another important one is ISM Manufacturing PMI, which will be released on Friday.
Last 3 ISM PMI came above 52 despite the ongoing US-Iran war.
If another such print happens, risk-on assets could rally.
Overall, the next 5-7 days will exactly tell 3 things:
Will the US-Iran situation escalate or de-escalate?
How's the US economy doing?
What does the Fed think about the economy?
And based on this, the big money will place their next bet.
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