News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • In this week's Macro Setup @CVecchioFX, discusses with @RiskReversal and @GuyAdami, news regarding property developer Evergrande weighing down US financial markets, and September's Fed meeting impact on assets. Tune into the markets now!
  • Copper demand continues to outstrip supply, according to the recent update from the International Copper Study Group. Get your $XAG market update from @CVecchioFX here:
  • China to be carbon-neutral by 2060; country will stop building coal-powered projects abroad - BBG
  • Curious to know if this is because a) bailout by Beijing is still widely viewed as the base case scenario if contagion materializes and/or b) recent backstops implemented globally to curb financial market fallout have effectively supplanted left tail risk
  • video uploaded from today's webinar
  • WTI crude rebounded nicely from session lows, now trading at $70.50 $CL #Oil #OOTT
  • RT @ZabelinDimitri: Regarding the Fed dot plot⬇️ "If another two officials were to move up their expectations for a rate increase into 2022…
  • Tonight will see Chinese markets open after a two day closure to observe mid-Autumn festival. Naturally, there will be increased focus and volatility given the current backdrop of Evergrande default concerns. Get your market update from @JMcQueenFX here:
  • RT @RiskReversal: A pretty hot @MacroSetup this week, brought to you by @Nadex and @openexc. @GuyAdami & I warn the young, but mighty @CVec…
  • RT @Nadex: The Macro Setup is back! CNBC’s @GuyAdami, @RiskReversal, and special guest @CVecchioFX discuss: -Evergrande vol hurts everlong…
Top Trading Lessons: Don’t Fight the Tape and Don’t Fight the Fed

Top Trading Lessons: Don’t Fight the Tape and Don’t Fight the Fed

Daniel Moss, Analyst

2020 proved once again that you should always follow two of the commandments laid out by Wall Street legend Marty Zweig in his 1986 book titled “Winning on Wall Street”: don’t fight the tape and definitely don’t attempt to fight the Fed. With markets in free-fall during the coronavirus crash in March, the Federal Reserve valiantly stepped in to stop the bleeding. The central bank rapidly cut interest rates, introduced a slew of lending facilities and implemented an open-ended Quantitative Easing program to stabilize financial conditions.

This sent equity markets soaring, with all three US benchmark indices surging to set fresh record highs this year. However, the remarkable rise in asset prices hardly makes sense when you consider that US GDP registered a record contraction of 31.4% in the second quarter of 2020 and the unemployment rate surged to a high of 14.7%.

Nevertheless, market participants continued to pile into risk assets, dismissing the notable deterioration in economic fundamentals in favour of the liquidity-rich backdrop provided by the Fed. As Zweig says, “the monetary climate – primarily the trend in interest rates and Federal Reserve policy – is the dominant factor in determining the stock market’s major direction”. Clearly, this adage continues to hold weight and should serve as a cornerstone for investors when positioning their portfolios.

Federal Reserve Balance Sheet – Total Assets vs. S&P 500 Index

Fed balance sheet vs SP500

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.