WATCH THIS BEFORE FED RATE DECISION TOMORROW
In a Nutshell
Tomorrow's FOMC rate decision (98.9% chance of pause and 1.1% cut) at 2 PM ET, followed by Jerome Powell's press conference and earnings from four Magnificent Seven stocks (Alphabet, Meta, Amazon), promises market volatility—go live on YouTube pre-announcement. Robinhood missed earnings badly (EPS -7.3%, revenue -8.6%), trading as a Bitcoin proxy at $74 lows amid worsening 2026 consumer sentiment; SQ trade secured $2,500 profit by playing safe. Markets at elevated NASDAQ levels carry huge downside risk despite AI hype, with poor earnings, rising unemployment/inflation, and slowing labor—stay patient, avoid overleveraging speculative positions like INTC/AMD.
These notes were generated by AI and may contain inaccuracies.
Tomorrow is one of the biggest days of the year with four Magnificent Seven companies reporting earnings, followed by the FOMC rate decision and press conference.
Trading Update on SQ
Did not continue trading SQ. When NASDAQ sold off and SQ pushed up, chose not to overcomplicate due to irrational markets over the past two weeks seeking reasons to push higher. Trump manipulating market with tweets. Played it safe, took profits, left with $2,500 profit for the day. NASDAQ recovered into close, ended 1% in the red, then pushed up an additional 0.45% including overnight hours.
Robinhood reported earnings and missed significantly. Trading as a proxy for Bitcoin. Guidance terrible, EPS miss by 7.3%, revenue miss by 8.6%. Proves companies trading at insane valuations are correcting. Now at lows of $74, may retest previous lows. If viewed as dip opportunity, free to buy.
Outlook on Robinhood
Looking forward to stock dropping as consumer sentiment continues down for 2026.
Fed rate monitor tool from investing.com shows 98.9% probability Federal Reserve pauses and cuts rates by 1.1.
Schedule
- Rate decision at 2 PM.
- Press conference at 2:30 PM with Jerome Powell live. Planning to go live on YouTube 5-10 minutes before rate decision. Drop thumbs up, subscribe, turn on post notifications.
After markets close at 4:00 PM:
- Google (Alphabet),
- Meta at 4:05 PM,
- Amazon. Four Magnificent Seven trillion-dollar (some multi-trillion) companies reporting post-rate decision.
Expectations
No unprecedented news expected due to high pause probability. Likely Trump tweet encouraging Jerome Powell to cut rates and that he's too late. This may be Jerome Powell's final press conference for rate decisions. Excited to watch live together.
At elevated NASDAQ levels, question is not if markets can push higher, but is it worth the risk? Clarify if trading or investing, assess intention and risk. Markets may push higher short-term, but huge downside risk. Why pushing higher despite:
- Companies reporting worse-than-expected earnings,
- Worse consumer sentiment for 2026,
- Rising unemployment,
- Slow labor market,
- Rising inflation? Driven by AI replacing jobs. Invest in AI but avoid overleveraging. Not about timing market, but common sense to avoid overextended positions where short gains are erased over 1-2 months. Stay patient.
Shoutout to trader who shorted INTC, AMD, and SanDisk successfully during selloff. Most speculative stocks crash hardest in uncertain times.
OpenAI and Mag Seven
Focus on OpenAI missed targets—some say it doesn't matter, others see red flags and overvaluation. Tomorrow's Mag Seven reports: Will they continue heavy spending, slow down, meet Wall Street expectations?
Call to Action
Hope to see you live. Drop thumbs up, subscribe. For live trading at market open, second link in description—sign up to watch trades live starting tomorrow. End year on green note.
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