Why Nearly $5T in Cash on the Sidelines Is Bearish for Stocks Never fight the Fed. https://moneyandmarkets.com/why-5-trillion-in-cash-on-the-sidelines-is-bearish-for-stocks/
I learned that as a kid. I read so many books telling me that. But I forgot it as an adult. Both because I am stupid, but maybe even more importantly because it has been so very long before the Fed went truly hawk mode. I shall never forget that lessen again!!!
"First you get the test, then you get the lesson." Given that lesson, what changes do you plan to make in the way you trade the market?
So let's be honest here, I ain't graduated to trading yet. I just nibble at the margins sometimes. But, logically (at least to the best of mine!), what I would say is this: If it appears the Fed will have an "easy" monetary policy for the foreseeable future, always err to the long side - buy dips, only sell truly huge rallies, any free money you have invest sooner rather than later, etc. If it appears the Fed will have a "tight" monetary policy for the foreseeable future, become a Ken, smear blood on your face, short fucking everything in site and dance with the Devil in the pale moon light...
Do you forsee trading using charts with lower timeframe than daily bars? Do you have a current outlook on whether the fed is easy or tight going forward?