Stocks climbing as Fed meets and Iran deal calms inflation fears — ride the mark
Thesis
Investors are feeling optimistic heading into the Fed meeting because falling oil prices act like a tax cut for consumers and businesses, helping to ease inflation worries. Major Wall Street firms are becoming more bullish, with Wells Fargo specifically boosting their year-end target for the S&P 500 because they see economic fears fading. If the new Fed Chair Kevin Warsh simply signals that interest rates don't need to go much higher, the stock market could easily rally on the relief. Buying broad market index funds captures this positive momentum.
Strategy approach
Build a long momentum strategy on SPY using the H1 timeframe. Enter long when price breaks above the 20-period EMA with RSI(14) between 50 and 65 (confirming upward momentum without immediate overbought risk). Manage risk with a 1.5% fixed stop loss or exit if price closes below the 20 EMA.