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Mark Minervini, independent trader and educator at Self-employed, reports that strong payroll and jobs data are reinforcing expectations that the Federal Reserve will remain on hold.
He stated that the market is currently pricing in a possible rate hike, putting pressure on equities. Minervini noted that he shorted SPY two days prior as a hedge against long positions and reduced exposure by selling some extended stocks into strength.
Minervini recently observed that the S&P 500 remains on track for a fourth consecutive year of gains exceeding 15%, similar to the 1995–99 rally, according to a previous note. He also responded to criticism after achieving a 25% trading return in nine days and discussed the challenges of hindsight bias in a separate statement.