..last nights Dow rally petered out after BTD traders stepped in.
..the bulls would call this correction overdone but when stocks have surged so much since Oct2023 they didn’t claim it was overdone.
…I told you last week Amazon had to fall some -30pc to return to Oct 2023 lows (from time I wrote it)
…and smaller cap stocks are already in firing squad as speculators take cover. A day makes a difference.
…Wall St is now trying to convince everyone that the Fed will be coming in with the bazooka igniting the Fed put….but look at Gold, it’s not buying it. And as I said last night, Fed cutting rates would be exacerbating the yen carry trade reversal making it worse not better. BoJ needs to take responsibility and come out and say and do something. It needs to say that future rate hikes are off the table. Would it save themselves ahead of saving the world? Time will tell.
Meanwhile watch what the Yen does. A fall beneath 140Y could usher in big turbulence.
