Powerful rally on today’s dovish FOMC. The FED decided to run things hot this meeting (meaning they are being market accommodative by keeping 3 rate cuts on the table this year even with inflation picking back up a bit) , similar to how they ran things hot when they said inflation is transitory in 2021. You can see it in the 2 year note yield, BTC, gold, commodities, and more. Could be a few reasons why they are doing it, and maybe they change their tone next meeting when new inflation readings come in hotter and hotter but for now this is what they decided to do.
The Vix melted lower all day as the last bits of vol are squeezed out of the market. Do we get the vix-expiration Vix spike tomorrow mid morning? I don’t know, but just keeping it in the back of my mind. Remember, all of these things are one part of a larger set of conditions so can’t count on one thing, have to look at the whole picture.
Thoughts from the last few days were if the FED was dovish then things like MARA, IWM, and TSLA would likely go higher, and if the FED was hawkish then IWM and TSLA would go lower. Plan for both helped to prepare for today.
Copper stocks like FCX and SCCO perked up today after the FED too. Again, if they run things hot then commodities like copper and gold go higher and drags the stocks with them. Multi week/months moves with dips in between.
Much appreciated!
Thank you. Helps me out a lot.
thanks
Thanks Chris
Thanks Chris.