Republic Risk: Here Come the CTAs

Look for about $86 billion in CTA buying this week as markets react to Powell's rate positioning.

Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000

The curtain rises on a new act for global markets.

Federal Reserve Chair Jerome Powell spoke Friday at the central bank’s annual Jackson Hole, Wyoming symposium. He explicitly signaled the start of rate cuts from their highest levels in decades. 

Powell said, "The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

This will be an eye-opening week for what’s in store this fall. Questions like 'How High?' and 'How Long?' are now shifting to 'How Big?' and 'How Soon?'

This has all been good news for small-cap and emerging market stocks.