Quick FOMC Thoughts.
Quick thoughts on FOMC tomorrow.
The first one and I start the video out below saying it: who cares.
50 or 25bps it doesn’t matter. The market priced in a rate cut back in June.
All that happens tomorrow is shakeouts/fakeouts and people getting whipped around. Some learn the hard way and others never learn which is why they become exit liquidity whether they realize it or not.
There’s a key level on QQQ 0.00%↑ that matters to me to watch, or an area, the price action ultimately dictates where the market goes but again it’s what they say in the notes that matters.
Second, I don’t care about betting directionally on this event; maybe if I wasn’t trying to grow a fund/manage client capital then sure but there are better times to participate in the market, tomorrow not being one of them. We positioned into certain equities 8 weeks ago and added into some event-driven ideas last week so this event is a non-starter, for me.
I do own (in my account) NFLX 0.00%↑ small but only on a breakout trade that may set up and given the implied $18 move it made sense to run it because of the asymmetry it might bring.
P.S. - Don’t let the market narrative or bozos online trick you into the narrative that this matters tomorrow or that you have to participate. Money is made 1000 ways and tomorrow is one of the harder ways to try to make it.
Dan
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