Hey everyone,
Breaking news just dropped thatâs going to shake up the markets this week, so I wanted to get this out to you right away.
đJerome Powell, the Federal Reserve Chair, just confirmed that the Justice Department opened a criminal investigation into him. They served him grand jury subpoenas on Friday and are threatening criminal indictment. The investigation is focused on the Fedâs $2.5 billion headquarters renovation project and Powellâs testimony to Congress about it.
Powell says this is retaliation because the Fed has been setting interest rates based on whatâs best for the public, not what President Trump wants. This is creating some tension between the White House and the Fed, which is supposed to be independent to one another.
Thereâs also a political angle here, Republican senators are already saying they wonât confirm any of Trumpâs future Fed nominees until this investigation is resolved. So this could drag out and create ongoing uncertainty.
đWhat this means for us as traders
Uncertainty in the markets = volatility.
And volatility = opportunity.
When news like this breaks, it doesnât matter what we think should happen or what we want to happen. Our job is to watch how the market actually responds and trade what we see, not what we predict.
This kind of event can create big moves, wide ranges, and those massive wicks weâve talked about. Institutions are going to be reacting to this, flows are going to shift, and that creates the setups weâve been training for.
đOur approach this week
Stay sharp. Watch for gap opens Monday morning. Look for unusual volume. Be ready for volatility to expand. And most importantly , stay disciplined and agile. Let the market show you where the opportunities are instead of trying to guess whatâs going to happen next.
This is exactly the kind of environment where patient, reactive traders can capitalize while others are panicking or trying to be heroes.
Letâs see what the market gives us.
See yâall tomorrow