{"id":14802,"date":"2019-03-21T12:14:53","date_gmt":"2019-03-21T20:14:53","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=14802"},"modified":"2019-03-29T11:12:55","modified_gmt":"2019-03-29T19:12:55","slug":"elliott-wave-fed-follows-market-yet-support-resistance-levels-3-22-2019","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/elliott-wave-fed-follows-market-yet-support-resistance-levels-3-22-2019\/","title":{"rendered":"Elliott Wave: Fed Follows Market Yet Again & Support and Resistance Levels 3.22.2019"},"content":{"rendered":"

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Elliott Wave: Fed Follows Market Yet Again<\/div>\n
By Steve Hochberg and Pete Kendall<\/div>\n
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Back in December, we wrote an article titled\u00a0“Interest Rates Win Again as Fed Follows Market.”<\/div>\n
In the piece, we noted that while most experts believe that central banks set interest rates, it’s actually the other way around\u2014the market leads, and the Fed follows.<\/div>\n
We pointed out that the December rate hike followed increases in the six-month and three-month U.S. Treasury bill yields set by the market.<\/div>\n
What happened with this week’s Fed announcement? Well, you guessed it\u2014the Fed simply followed the market yet again.<\/div>\n
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The chart above is an updated version of the one we showed in our last article. The red line is the U.S. Federal Funds rate, the yellow line is the rate on the 3-month U.S. T-bill and the green line is the rate on the 6-month U.S. T-bill. The latter two rates are freely-traded in the auction arena, while the former rate is set by the Fed.<\/div>\n
Now observe the grey ellipses. Throughout 2017-2018, the rates on 3-and-6-month U.S. T-bills were rising steadily, pushing above the Fed Fund’s rate. During the period shown on the graph, the Fed raised its interest rate six times, each time to keep up with the rising T-bill rates. The interest-rate market is the dog wagging the central-bank tail.<\/div>\n
Now note what T-bill rates have been doing since November of last year; they’ve stopped rising. Rates have moved net-sideways, which was the market’s way of signaling that the Fed would not raise the Fed Funds rate this week.<\/div>\n
Too many investors and pundits obsess over whether the Fed will raise or lower the Fed Funds rate and what it all supposedly means. First, if you want to know what the Fed will or will not do, simply look at T-bills, as shown on the chart. Second, whatever their action, it doesn’t matter because the Fed’s interest-rate policy cannot force people to borrow.<\/div>\n
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See Chapter 3 of\u00a0The Socionomic Theory of Finance\u00a0for more evidence.<\/a><\/div>\n<\/div>\n
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Trading video 101:<\/a><\/div>\n
How I like to use support and resistance levels<\/a><\/div>\n<\/div>\n
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Good Trading<\/strong><\/p>\n

Trading Futures<\/a>, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.<\/p>\n

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Futures Trading Levels<\/strong><\/p>\n

03-22-2019<\/p>\n

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\n<\/a>Economic Reports, source:\u00a0<\/strong><\/p>\n

https:\/\/bettertrader.co\/<\/a><\/p>\n

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

____________________________________________________________________ Voted #1 Blog and #1 Brokerage Services on\u00a0TraderPlanet\u00a0for 2016!!\u00a0\u00a0 ____________________________________________________________________ Dear Traders, Like us on FaceBook! www.facebook.com\/CannonTrading Get Real Time updates and\u00a0market alerts on Twitter! Elliott Wave: Fed Follows Market Yet Again By Steve Hochberg and Pete Kendall Back in December, we wrote an article titled\u00a0“Interest Rates Win Again as Fed Follows Market.” In […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67],"tags":[],"class_list":["post-14802","post","type-post","status-publish","format-standard","hentry","category-future-trading-news"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/14802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=14802"}],"version-history":[{"count":2,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/14802\/revisions"}],"predecessor-version":[{"id":14823,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/14802\/revisions\/14823"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=14802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=14802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=14802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}