Republic Risk: On the Fed

We're Green on the S&P

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

With the Federal Reserve’s two-day FOMC meeting wrapped up, the market can now obsess over the likelihood of a September cut. In fact, I expect this will be all that’s discussed. The S&P 500 ripped higher - as expected - due to the pre-FOMC drift. The 2:35 pm trade succeeded again, and a late afternoon profit-taking pattern followed.

Rinse. Repeat. It’s the most predictable trade in the markets today… and my advice is to trade it until it breaks.  Powell's multiple mentions of a potential September timeline will continue to stoke media frenzy, as we count down 47 days until the Fed's next pow-wow. Call me contrarian, but I think the odds Powell and Company wait until November 7th are higher than ZERO.