Video Transcription:
Hey Guys, Christopher Meza here.
I’ve been meaning to get this information out to you now for a few days but as I’m sure you’re well aware, it’s been very busy here at RTA responding to the many questions regarding the stock market, and how to protect 401K’s from market volatility in addition helping people get started in the greatest investment on earth…which I believe for many reasons is development ready land. Now the chart of the stock market that you’re looking at is coming from yahoo.com/finance. I want to use free tools so you can follow along.
So here’s what we know, first, the market had a sharp downturn in August, some experts say it was the worst sell-off, in terms of the market being oversold, in 75 years. Second, the market seemed to find a bottom or point which buyers were willing to jump in the market and from there the market seem to start slowly climbing up. However, what was actually happening is what technical traders call a Golden Triangle or put simply a symmetrical triangle pattern that is formed when the market bounces up and down between support and resistance lines. Fourth, the golden triangle has an apex that corresponds with the Federal Reserve Meeting happening later today where everyone wants to know will the Feds raise rates?
Let’s get back to our golden triangle for a minute before we continue with the Feds. Technical traders have found the golden triangle to forecast an explosive move up or down at the apex of the triangle. Because of the recent crash in price, the market can go up quite a bit but still not have enough momentum to break through strong resistance barriers, ultimately leading the price to eventually fall. For those of you averaging out of the market and up-tick like this could be just what you need to sell out at a higher price level that you missed prior to the crash. Unfortunately, probability suggests that a golden triangle usually breaks to the side that would continue the trend and in this case that would be down.
So let’s get back to the Feds. Will they raise rates will they not? If they raise rates will the market fall? If they keep rates the same will the market rise? What if they decide to raise rates but set a definitive date sometime in the future that the rate will be raised, will that cause the market to fall now or fall in the future on that date? So many questions. The anticipation is nearly unbearable... Well, I have GREAT NEWS. I’m going to give you the answer. It may not be answer you’re looking for but maybe you’re not asking the right questions. The question is not whether the Feds will raise rates or not. The question is how effective will the Feds be at instilling confidence in the market despite whether they raise rates or not. The Feds employ some of the greatest minds of our time, they know about the golden triangle. Their focus will be to say the correct psychological phrases to keep things calm. The correct psychological phrases to help bolster confidence in the market and hopefully ignite a bull rally. Consider for a moment that simply announcing to keep rates low in an effort to keep the market rising might suggest to some that we have an unhealthy economy that needs a sky is falling, end of the world, type of low rate to keep the market moving up. Simply, the Feds will be looking to say the right thing. For example if they decide to raise rates they will say, “Our economy is so healthy, unemployment is lower than ever, real estate is booming, the stock market is high, it is time we align our rates to reflect the growth and health our economy has securely achieved.”
My personal opinion is that the Feds are extremely smart. I am willing to bet that whatever they decide to do, they have studied how to perfectly word it to create an end result that will ease any fears and spark sureness in the market. I know what I’m about to say is against the golden triangle’s probability which is to continue the trend, however, I can’t bet against the Feds, I believe we are in for a bump to the upside…well…at least temporarily.
If you want to learn more background on some of the items I’ve discussed, please visit our website rtaland.com, click on news, and click on VIDEO: Stock Market Crash and How To Protect Yourself. If you want to learn how to make money in this or any economy, come here RTA and myself, speak live THIS Saturday. Simply RSVP by visiting RSVP4RTA.com
I hope you enjoyed this video, please be sure to leave your thoughts below.