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  • Writer's pictureF4VS

[SERIES#1] A) How Macroeconomic Factors of SPY Impact Your Trading: A Series Introduction

After working through the first two levels of the CFA curriculum in the past, I realized that it can be hard to find market educators online who discuss more in-depth concepts and how they relate to the real world. The content that is posted online by popular creators is not very helpful when it comes to understanding deeper topics in the realm of finance and trading. If I have to see one more post or video on chart patterns I am going to lose my mind! Where most retail traders fall short is the balance between technical and fundamental analysis. Most traders focus too heavily on the technical aspects of a setup but are never able to marry both types of analysis.


Even when searching for articles on more in-depth topics, it seems like I am reading someone trying to copy write an article, giving generic takes on a subject (or maybe I'm not searching hard enough, but even then, why should I be searching this hard to find more detailed explanations of topics when the clickbaity links will always come up first). Part of the reason I started this platform is that I can hopefully address, analyze and share more detailed areas of trading from a retail trader's perceptive. And not for the sake of doing so but to try to connect this to my own trading and understanding of the real world of finance.


Now maybe there is a reason for all the generic, surface-level content. Maybe it is easier to post a video regurgitating what chart patterns look like or a 10-second clip on "How to Get Rich through Trading" rather than a long-winded analysis of yield curves for example. No one really gives a f*** about yield curves. Well, I believe that is to say unless it makes you money then people will care, and rightfully so. Now if you knew that yield curves have an underlying impact on the setup you trade, then I sure hope that you would know a hell of a lot about them. There is another aspect to this that is, you don't know what you don't know. If you don't know your trading system is impacted by general market conditions (which most systems are), then understanding why macroeconomic factors such as yield curves are important will help to gauge the overall market sentiment, and therefore the system you trade. These general market conditions can be seen through the lens of $SPY (S&P 500 ETF). I chose the S&P 500 index here as I believe it would be the most appropriate.


*This will be an ongoing series, that I hope doesn't end for a long long long time.


Series Topic Ideas:

  • Interest Rate Probabilities

  • Breakeven Rates & Understanding Inflation

  • Yield Curve Inversion Analysis

  • And others...


Now, I'm not going to sit here and say by knowing topics such as yield curves, interest rate probabilities, and breakeven points, you will be able to predict SPY or QQQs price movements (because I would be rich if that was the case). This series is to provide tools on how to look at the market in a different way. And apply these tools practically in the real world of trading!

In conclusion, this blog series aims to give retail traders a deeper understanding of macroeconomic factors and how they can influence the S&P500. I hope to offer a comprehensive resource that goes beyond generic takes and clickbait-style content. I hope this series will be a valuable tool for retail traders. Stay tuned for the upcoming articles in this series and talk soon.



-F4VS




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