FOMC Commentary Breakdown And Thoughts On Going Forward In This Bull Market
Today's guest on Premarket Prep, Christian Fromhertz, Founder and CEO of Tribeca Trade Group.
Christian has 15+ years of experience in the Financial Industry. Previously, Christian was a Director and Senior ETF Trader with Bank of America Merrill Lynch. While at BAML, Christian traded for Institutional clients and provided risk markets in domestic, international, fixed income, commodity, and currency ETFs. He also traded programs, customized indices, futures and swaps on their Delta One Trading Desk.
Christian has 15+ years of experience in the Financial Industry. Previously, Christian was a Director and Senior ETF Trader with Bank of America Merrill Lynch. While at BAML, Christian traded for Institutional clients and provided risk markets in domestic, international, fixed income, commodity, and currency ETFs. He also traded programs, customized indices, futures and swaps on their Delta One Trading Desk.
Transcript
00:00 What do you do when there's no resistance in sight? Do you just make something up or do you use
00:05 stocks? The daily ranges, what are you looking at today?
00:11 Well, yeah, I mean, really an interesting tone from you guys, really bulled up this morning.
00:17 That's interesting. I don't know. I have an indicator over here, so I'm making a note here
00:22 that these guys are all bullish. We have run a long ways here, like on some stocks, not all stocks,
00:29 but on some stocks here. Are we full on? What did you think of first? What did you think of
00:34 Fed speak yesterday? Powell, speaking both sides, that, "Hey, we're going to be data dependent. We
00:41 may not go in September, but we may not lower any time here soon too." What was your thoughts on the
00:46 Fed and then what's your thoughts on going forward in this bull market? Yeah. Well, when I spoke to
00:53 Joel earlier in the week, I think we knew that we were going to have a very big week of both
00:57 earnings and Fed. And I think we both agreed that the Fed, I think it kind of, they weren't going to
01:06 go out on a limb. It was priced in that they were going to do the 25 basis points in terms of what
01:11 Fed Fund futures were pricing. And really, they don't, I mean, they're going to continue to say
01:16 these words like data dependent and so forth. They just don't want to go out on a limb.
01:20 I was listening to the old vice chair, Clarida, this morning too. And they want to just maintain
01:28 that status that they're going to wait and see. And the other thing too, is that we don't have
01:33 another Fed meeting until September 20th. I mean, that's almost two months away. So it just kind of
01:39 puts that whole, the Fed on the back burner for now. They're going to do what they do and watch,
01:46 and we'll get a number of inflation reports before that happens.
01:50 But I think you have to turn over to what's going on in earnings reports. And there's some bad ones
01:56 in there that you guys are going over this morning. And there's a Chipotle out there and a
02:01 Netflix last week and Tesla last week, which they kind of set the bar a little bit low. But then
02:06 you've got things like Boeing, which I wanted to talk a little bit about, which I think is a huge
02:11 breakout. It's been going sideways for a number of months. So you've got various different stories
02:17 in different sectors. So it's not just all tech. As Mitch has been talking about, the industrials
02:24 have been really strong. GE had a really nice quarter. So there's these stories that you go
02:30 around in different sectors. And it's tough to not like what's going on when you see this
02:36 participation that's also happening in the small caps too. And yeah, the Dow stocks have gotten
02:43 going for 13 days in a row and broke out of that inverted head and shoulders that a lot of people
02:48 were talking about. So yeah, I mean, for now, I think things are great. We do have to kind of
02:53 look a little bit towards August and September, which are a little bit more seasonally weaker.
02:58 But for now, without any major sell signals, technically, you do what you can in this market,
03:06 and you try to grind it out and make money and participate in some of these other areas,
03:10 not just tech, software and growth. And there's various opportunities in other spaces, which I
03:16 like that type of a market, of course. And I think most people do. I like when it's not just one
03:22 group that's participating, when there's multiple groups going on. Do you chase a stock like
03:28 Meta or do you buy dips on other stocks here? How does Christian Fromm Hertz trade this? Because I
03:34 mean, if you're chasing Meta here today, you're doing pretty well because it's like 315 last
03:37 night, 320, 328. It's continuing. Are you looking at other sectors, maybe like looking at stronger
03:44 sectors, maybe the stocks are dipping? I mean, we've had Netflix pull back significantly from
03:48 the highs. Are you interested in something like that or are you just staying right on
03:52 the momentum trade and buying strength? A little bit of both. I mean, I'm actually
03:57 looking, Meta is kind of tough because that's a big move. And you look at the chart and it's been
04:03 in this trend for a while and we have seen some bullish option activity in that name, like
04:08 positioning for a while. So I think little dips, and I don't know if you're going to get a big dip
04:12 in this name at this point, but even something like Google, if you look at Google reported
04:19 yesterday. Yeah, last night or two nights ago. Two nights ago. This still, I think, has some
04:26 upside to go. I mean, I just actually tweeted out one of my reports in the morning and 125,
04:33 I think, is a level to kind of trade against because it hasn't really broken out of its
04:38 yearly value area yet. So there's things like that. And with anything, as long as you have a
04:44 support level and it's whether you're buying a dip or whether you're playing some momentum,
04:49 as long as you've got a stop price and a nice level to trade against, that's basically what
04:54 I look at. And I'll look at names. One of my favorite setups is just seeing names and uptrends
05:01 and that methodically kind of pull back to the 20-day moving average and then start to
05:07 hold that support and start to trade higher.