Welcome to Trading The Close! Today's session was dominated by the highly anticipated FOMC meeting, which delivered a one-two punch that will impact markets for the rest of the year and into 2026. Jerome Powell announced the expected 25 basis point rate cut, but immediately stated that the next cut is not a guarantee, maintaining a data-dependent stance. However, the biggest news was the secondary announcement: The Federal Reserve will begin buying $40 billion worth of Treasury notes starting this Friday. 💰 The $40 Billion Liquidity Injection. We break down the mechanics of this move, which effectively creates new money out of thin air and hands it to the banks who sell the T-bills. This action injects liquidity into the financial system and pushes short-term interest rates down. It also indirectly finances a portion of the government's deficit by expanding the Fed's balance sheet, a move that resembles a form of Quantitative Easing (QE). We analyze the impact on the 10-Year Yield and the overall market structure of the $SPX and $QQQ. 📈 Corporate Movers & Earnings GEV's Record Surge: GE Vernova ($GEV) shares surged to a record high after boosting its financial targets for 2025/2026 and doubling its quarterly dividend (Source 3.1, 3.3). We provide technical analysis on this powerful breakout. GM's Bid: We cover the surprise surge in General Motors ($GM), analyzing the technical reasons behind the move and the key resistance levels now in play. CHWY Earnings Fiasco: Chewy ($CHWY) reported impressive earnings beat with strong profitability (Source 4.1), propping the stock up early in the day. However, it quickly gave up all its gains, forming a technical "rug pull" or topping tail. We discuss why investors rejected the initial rally. Tech Watch: We analyze the technical setup for Netflix ($NFLX) ahead of its major content slate announcements, and provide a critical earnings preview for tomorrow's big release, Broadcom ($AVGO). 🎯 Tickers and Markets Covered Today: We provide comprehensive technical analysis across indices, key stocks, crypto, and commodities to understand the full market reaction to the FOMC news. Indices & ETFs, Individual Stocks, Macro & Commodities: SPX, QQQ, SMH, IWM, GEV (Record Surge), 10 Year Yield (Fed Impact), GM (Technical Analysis), Bitcoin, Gold, Silver, CHWY (Earnings Rug Pull), US Oil, Natural Gas, NFLX, AVGO (Tech Watch). If you'd like more background on why the Fed is resuming asset purchases, this video explaining the "clogged money pipes" will give you a deeper understanding of the liquidity issue.
Disclaimer: This show is for educational and entertainment purposes only. The information provided is not financial advice. Trading stocks and options involves substantial risk, and you can lose money. Always conduct your own research and consult with a professional financial advisor.
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Right at the close of the market, Drew will: - Review the day's winners and losers - Analyze the latest news and events - Offer their expert opinions on the market's direction
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