Terrible Tuesday – Powell Says US Faces Slow, Uncertain Recovery

Powell testifies before Congress today.

We already know what he's going to say though, as his testimony is pre-released.  Not that that will stop the market from acting shocked when they hear it later (because who reads?).   That means we can short the Nasdaq Futures (/NQ) again below the 11,000 line (or the 11,100 line if we hit that first) with tight stops above as it's a high-percentage play as you have a clear line to take a small loss while even a small dip should take us down 50 points for a $1,000 per contract gain.  So, if we stop out with a $50 loss but could have a $1,000 gain – that's what we mean by a high-percentage play.

Many economic indicators show marked improvement,” Powell said Monday in the text of testimony he’s scheduled to deliver before the House Financial Services Committee on Tuesday.  “Both employment and overall economic activity, however, remain well below their pre-pandemic levels, and the path ahead continues to be highly uncertain,” he says.  

Powell will appear alongside Treasury Secretary Steven Mnuchin, a quarterly exercise mandated by the Cares Act passed by Congress in March and which appropriated about $2Tn to help speed the U.S. recovery. The pair are likely to face questions about their use of Cares Act funds and about what else should still be done.

“The path forward will depend on keeping the virus under control, and on policy actions taken at all levels of government.”

Well, good luck with that!