Risk: Backed Into a Corner

Rates are moving lower... and that's going to change the global equation.

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

The S&P 500 Futures are back above 5,700… Green across the board. 

But things can change quickly.

I want you to pay very close attention to 2:35 pm today. 

That’s just five minutes into Jerome Powell’s afternoon speech. For the last two years, traders could make a small fortune by following the algorithms as they loaded up and then squeezed higher. The final hour, however, had seen a selloff among institutions. 

Now… we might move into a different pattern. We are at the onset of a pivot—a major change in monetary policy that hasn’t happened since late 2018. Today, we will hear a lot about interest rate policy. 

But I stress that we cannot and should not grow overly focused on just the Fed Funds rate. There’s something bigger happening… so pay attention.