What the Fed will do next week: My Inverse ETF Strategy

I am getting ready for a move in the markets with three big economic data points next week to include the Fed meeting

PCE Price index— Year-Over-Year Growth (2.796% up from 2.678% the month previous)

There are three key moments coming next week:

• Money Supply Released on Tuesday;

• Federal Reserve meeting on Tuesday & Wednesday with announcements on Wednesday; and,

• Personal Incomes, Expenditures, & PCE Index on Friday.

The entire market will be glued to Wednesday’s release with not much concern about the other two. That’s too bad for them, but if you want to stay ahead of the curve, this is where the separation begins.

The chart above is the rate of growth in inflation from PCE. We already got inflation growth rates out of CPI last week, and mostly these numbers were soft. For now.

But, it isn’t so much the inflation data we already know is not going to show up immediately. There is a small amount of ‘fear’ in the stock market. Leading up to the Federal Reserve meeting, that fear may seem unfounded and because of that, this will shift the markets.