Last week gave investors plenty of reasons to get rattled.
The Federal Reserve raised interest rates. Oil stayed above $100 a barrel. Chip stocks took a sharp hit in a single day. And it was also a major monthly options expiration week, which tends to stir up extra movement on its own.
And yet... the market ended the week surprisingly calm.
Ramie's message this week is simple. When the headlines get loud, the investors who come out ahead are the ones with a system that filters out the noise and focuses on the signal. Through all of last week's swings, Ramie's technical gauges stayed steady, disciplined and fully invested.
Here's a quick look at what the signal was saying.
The Fed's First Rate Hike in Over Three Years
On Wednesday, the Fed raised its benchmark rate by a quarter of a percent, to a range of 3.75% to 4.00%. Every voting member agreed.
If you're newer to this, here's why it matters. When the Fed raises rates, borrowing gets more expensive for businesses and families. It's one of the main tools the Fed uses to bring inflation down.
According to Ramie, though, the hike itself wasn't the real story. The message behind it was. The Fed said the economy is solid, consumers are still spending, and inflation is still too high. Put simply, the Fed is tightening because it thinks the economy is strong enough to handle it.
Consumers Kept Spending
August retail sales jumped 1.2%, well above the 0.8% economists expected. People are still spending even with higher rates. That's good for growth... and it also gives the Fed more reason to keep rates high.
AI Got Knocked Down, Then Got Back Up
On Monday, the index that tracks semiconductor (chip) stocks plunged 5.9%. That happened after leaders from several major AI companies called for slowing down advanced AI development over safety concerns. Nvidia, AMD and other big names took a hit.
Still, the Nasdaq finished the week up 0.7%.
Ramie called that rebound possibly the most interesting signal of the whole week. Investors were willing to punish AI stocks when the growth story got questioned, but they weren't willing to walk away from it.
What the Charts Are Showing
Early in the week the S&P 500 slipped below a key support level. By Friday it had regained its footing and closed back above it. The trend is still positive, and momentum is starting to pick up.
Fortress clients got the exact levels Ramie is watching on both the S&P 500 and the Nasdaq. That includes the one resistance level that, if broken, could send the Nasdaq back toward its record high heading into the fourth quarter.
The Week Ahead
This week should start to answer a big question. Was last week's hike a one time move, or the beginning of a longer series? Several Fed officials are scheduled to speak. This week,President Trump and Chinese President Xi are set to meet in Washington, with trade, technology and AI all on the agenda.
This is just a taste. The full newsletter covers the Fed's new forecasts, the key chart levels, the reports Ramie is tracking this week, and what it could all mean for your money. Every Fortress client gets that breakdown every single week.
The market kept its composure last week...
But, do you have a plan that lets you keep yours when the headlines get loud?
If you're not sure, a conversation with the Fortress Financial team can help. It's complimentary and risk free. You'll leave knowing exactly where you stand and what your options are.