It’s Janet “Aunt Bea” Yellen’s day tomorrow. Its her world and we just live in it. The power of this little woman from Brooklyn is immense.
Fed days are always crazy, but tomorrow could be bat shit crazy as the Fed may raise rates for the first time since the Age of Pericles. They probably wont, but they might.
The first market move will be fascinating, and its not always the true tell of what the market has in store for the rest of the day. The bears have laid in shorts, so they will be covering in epic fashion if the news is good, on the other side of the equation bears will press shorts if rates get raised.
Or will they? What if this dopey rate increase is already built in? I mean we just had a 10% correction. The market could lift even with a rate increase. The market loves to make you look like a drunk walking in traffic. No one knows, but tape action has been better.
The only thing that doesn’t make me uber bullish, even with a “no action” by the fed, is the charts. I cant remember the last time individual stocks, etf’s and indexes looked this bad. Real damage.
If we do rip higher tomorrow I will most likely do nothing on the long side. I want to watch the next couple of days. That will be the true test. If the selling returns, it means sellers were trapped and just wanted better price to get out. Then we could have some big problems.
So confusing right? But epic times.
See you in the morning.