FOMC Rate Decision Will Destroy Your Positions If You're Not Ready
In a Nutshell
Ricky warns that the FOMC decision could trigger sharp moves, so traders should avoid leverage, size positions conservatively, and stay patient rather than chase further shorting into deeply oversold conditions. With global chip stocks already down 40–58% and earnings from Meta and Microsoft pending, the focus is on waiting for clearer direction instead of forcing aggressive bets. The LPP team is taking small, intentional trades, respecting oversold levels, and prioritizing capital preservation to finish the year green.
These notes were generated by AI and may contain inaccuracies.
Ricky from TechButSolutions is minutes before the FOMC rate decision. He asks viewers to get the video to over 500 likes and subscribe to the channel if they want him to live stream the FOMC decision for free. The Fed rate monitor tool shows the decision is in 1 hour and 39 minutes with a 36% probability of a rate hike and 63.5% probability of a rate pause.
Citadel's comment influenced the market with a big gap up on the possibility of a rate hike. For the month of June, inflation came in lower than expected. The Federal Reserve cannot justify raising rates when inflation came in below expectation, though anything can still happen.
Markets have taken a significant hit with LPP traders down to 1.75% at one point. The team did an amazing job giving the market time to identify its direction and going with the flow once it turned bearish. All trades had intentions shared, with mindful position sizing and profit taking. The trading session was not perfect, and it's easy to look back and wish positions were held longer, but markets are rational and always look for reasons to recover.
On the 5-minute timeframe, there's been a pattern of sell-off to recovery to sell-off to recovery to sell-off again. The market is incredibly oversold with risk too high to continue shorting. While continuing to short is possible, the oversold condition makes going long an option to entertain. The LPP team has already received announcements of the next series of trades.
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