Powell Gives Rate-Cut Hopesters A Proper Talking-To
And no mistake.
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Look Closely At The Video Of The Powell Speech
If you zoom in and wear your finest reading spectacles you will see the moment a lackey runs into the room to remind Chairman Powell that merely a hint of a rate cut in March will send stonks To Da Moon. At one point yesterday even $AMD was almost green after being down several points after its lackluster Q4 print. Powell was dragged back on track and duly delivered the message of being data-driven, etc, and even trotted out the Golden Rate of 2% inflation. If you caught Yimin's Fed-inar yesterday you will know precisely how much econometric science lies behind that 2% inflation target. (If you missed it? Here's the recording).
Equities sold off into the close yesterday although long-dated bonds did the opposite, with $TLT and $TMF climbing into and beyond the close.
Personally I sold out of and banked gains in both $UVXY (long volatility) and $UCO (long oil) yesterday to take advantage of the elevated tension in equities and geopolitics respectively. Both these trade ideas were published in the Trading Gains channel we host - you can learn more about that, here.
OK. Now onto our usual charts. Paying members of this Cestrian Market Insight service, scroll down for our take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000.
Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.
US 10-Year Yield
Trading to that downward-sloping blue channel rather well for now. Hit resistance and started dropping.
