...complacent market had to learn the hard way when Powell took the punch bowl away.
...but I think the market may not yet move down in a straight line, but I would imagine that 'smart money' would be considering taking chips off the table after an overnight assessment, now that risk premium has risen. They would reinforce the positive narrative of Trump 2.0 while taking profits.
...the markets have their uncanny ways of blindsiding market participants to no end.
...Winning Is Not Losing, and if you play this market, one has to be nimble.
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BREAKING: The S&P 500 falls sharply after the Fed cuts rates by 25 basis points, but raises inflation forecast. The Fed reduced their outlook from 3 to 2 rate cuts in 2025 and raised inflation expectations from 2.1% to 2.5%. Inflation is back https://x.com/KobeissiLetter/status/1869459677190451374
Something odd is brewing. In nearly 100 years of history, this has never happened before. The S&P 500 is within spitting distance of a high yet fewer than 39% of its stocks are even above their 50-day moving averages. https://x.com/jasongoepfert/status/1869386819114291284
There have been a handful of unique times when fewer than 45% of stocks were above their averages. The S&P continued to climb after most of them, sometimes for months. But the party ended eventually as poor participation came home to roost. https://x.com/jasongoepfert/status/1869386820993397211
The only date that comes close to what we're seeing today was in 1972. After that, the index jumped a bit, pulled back, soared to a new high, then crashed and erased years worth of gains. https://x.com/jasongoepfert/status/1869386824415916506
