Howdy Larkers! This is Lark Digest, and we’re the trading newsletter as reliable as your dog... but with fewer "accidents" and more "pawsitive" stories!

Mr.Lark

On today’s menu:

• FTMO Becomes A Broker❗️ 

• Your Full Inflation Report ✅ 

❗️FTMO Becomes A Broker

FTMO needs no introduction.

They’re the largest firm in the industry and today, they’re making news for something different.

No, it’s not a discount code.

No, it’s not a new challenge model.

FTMO is officially becoming a broker.

What does this mean?

As the news just broke, there are still more questions than answers.

Here’s what we know:

• They’ve hired Michael Kamerman, the former CEO of Skilling, a Cyprus-licensed FX and CFDs broker, which means he’s the perfect man for the job.

• Their CEO, Otakar Suffner, said, “It doesn’t mean that we are going to focus less on our core product.”

Here’s what we don’t know:

• It’s not clear when they’ll launch and how far along they are on the path to getting regulated.

• We don’t know who it will be available to.

What’s impressive is that, in typical FTMO fashion, no fancy marketing campaigns or releases indicated that they were “thinking” of doing this.

They just did it.

And while they have a huge regulatory hurdle ahead of them, this will be a great move for the industry.

😏 Active Goodies

Let’s play a little game called Did You Know?

• Did you know that Lark Funding has been in business for 715 days?

• Did you know that we have the best 3-stage program in the industry?

• Did you know that we offer cTrader AND a TradingView integration?

• Did you know you can always respond directly to this email and hear from our team?

Thanks for playing 😉 

PS: If you’re ready to become a Lark Trader, we’ve got 15% off right now!

📉 Your Full CPI Breakdown

Yesterday was the highly anticipated inflation report.

Are groceries still getting so expensive that I need to stick to my daily beans and rice?

Well, kind of (😢) 

It’s still high, but not quite as high.

That’s right, the April CPI figure came out at 3.4% which is exactly what the market was anticipating.

How did the market react?

Talk about a whipsaw!

So why was the market more indecisive than me trying to figure out what brand of frozen pizza to eat for dinner?

Here’s everything you need to know.

1/ No More Rates Hikes ✅ 

If you’re tired of things being so expensive and your mortgage payment only going up, that’s about to change.

By inflation coming in slightly lower than before (3.4% versus the previous 3.5%), it means the Federal Reserve does not need to hike rates any further.

Woohoo!

So, does that mean they’re going to begin cutting?

Well, not too fast there.

2/ Things Are Still Good…?

If you listen to Mark Cuban (my second favourite shark on Shark Tank after Mr.Wonderful), things are going great.

And if everything he’s saying is true, that’s good news, right?

Well, not for people who want interest rates to drop.

Remember, rate cuts are to help strengthen the economy. It’s to give the economy a little tap on the back, a little push.

But if things are going well (which is questionable, as there’s conflicting data like THIS), cutting rates can:

1. Lead to higher inflation.

2. An overheated economy.

*I don’t know about you, but I’m getting a headache just typing this*

So let’s talk about how we can make some money.

3/ Traders 101

Okay, so how do we actually use this knowledge to our advantage?

You first need to understand this core market relationship:

• High Rates = Bad For Stocks 📉 Good For Dollar 📈 

• Low Rates = Good For Stocks 📈 Bad For Dollar 📉 

And remember, the market is always forward-looking.

It’s not about what’s happening today; it’s about what could happen or is expected to happen tomorrow.

And because inflation is slowly (insanely slowly) starting to cool, it means the likelihood of rate cuts is increasing.

In fact, the consensus is now that we might see a cut as early as September.

And that’s why we’re seeing stocks move up and the Dollar down.

Oh, and let’s not forget our beloved Bitcoin, which gauges risk appetite. The Big B was up over 5% yesterday and is now above $66,000 🤑 

TLDR:

1. Inflation is coming down.

2. We’re not going to see any more rate hikes.

3. The market now expects a rate cut in September.

4. Our bias is now long risk-assets and short safe-havens.

☕️ Pre-Market Fuel

1/ GameStop is back below $40. Yesterday, the former SEC chair said that RoaringKitty was manipulating the stock price (again).

2/ June 27th = Fight of the century? Apparently, Biden and Trump are going to debate, and I couldn’t be more excited.

3/Same-day approved payout? Check out what a Lark Trader said yesterday.

🍪 Digestible Memes

Share Lark Digest

Chances are you have some trading friends. Why don’t you be a pal, share Lark Digest and earn some goodies for it?

You currently have 0 referrals, only 1 away from receiving The Trading Plan That Helped Me Pass 4 $100,000 FTMO Challenges.

Or copy and paste this link to others: https://pipmunch.com/subscribe?ref=PLACEHOLDER