Finally Fed Day, Hike or Non Hike?

Finally Fed Day, Hike or Non Hike?
December 19 01:01 2018

It’s finally FED DAY. The day where Mr. Jerome Powell and company make the decision to continue to hike rates against the advice of the commander and chief, or admit they are wrong and do not push the limit here. With the market hanging right on the February lows (imagine that) likely right at the time the decision is released, how will it react? This is honestly a toss up to me. Does 2530ish hold, or not?

And here is the kicker, we already know what is going to happen. Sorry to ruin the story, but Powell is going to raise rates tomorrow (90% chance), and it will be yet another policy mistake (99% chance). With growth deaccelerating at a negative rate of change q/q, the Fed CANNOT BE raising rates while trimming the balance sheet at the same damn time. I have been saying this for the last 4 months and a reason I have been in cash since the end of September.

Ole Trumpy is right here. You can’t be raising rates and trimming right now, the time to do that has passed for now. I’m anxious to see how the market reacts and I only care about if the support holds or fails, but you should pull up the charts around 2pm EST tomorrow for all the fun filled shenanigans…

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Just Climbing the Wall of Worry and Picking the Right Time to Get out of the Way. I am a Nuclear Engineer who quit and has studied global and crypto markets for almost a decade.

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