It's All Fun & Games.

Until it’s not.

Last week on the article of the week the title was: When will this stock market rally end?

I talked about $SPX and IWM 0.00%↑ charts and my views. (go to the video chapters to see).

Then I talked about the rate cut today and why it doesn’t matter like the September rate cut mattered.

The markets priced in this move way too fast, like we always do.

Alan Greenspan once called it “Irrational Exuberance” - it’s just what markets do. Every time something goes vertical the “traders” who are run by their emotions rush in to buy then, when you get selling like today, they hold….then they hold and hold some more.

Go to 25:00-49:00 - The discussion on SPY 0.00%↑ and IWM 0.00%↑ charts is there then the Rate Cut/FOMC analysis.

But then, when you get situations like VFC 0.00%↑ (which hit a new 52 week high today and talked about all year on the show here) on the lows (aka a clearance sale) people ignore it and run away.

I’m sure retail and the passive crowd has the same question we all do after today but given some of the Mag 7 crowding it’s just getting started…which is great, if you’re on the right side of the trade.

• Mag 7 earnings growth are already set to decelerate in 2025 now add in less rate cuts than expected and you have a recipe for a big repricing.

Not to mention, everyone and their mother were crowded into these names.

Just look at the options chain yesterday on Tesla that I posted.

103K options on one strike.

It’s madness but it’s madness because nobody knows what they’re doing.

Then there was XHB 0.00%↑ (also in the show and also a Swing Alert last week).

We’ve been tracking this sector all year and started shorting it in client portfolios over a month or so ago.

What comes next in housing given the Fed meeting today deserves a discussion as well…..

I have a lot to cover on this weeks article of the week given the FOMC meeting and this selling we’ve got across the board so get your questions in here.

The show will be out Friday.

Dan