You’re thinking am I gonna front-load with 50 bps or do I only have 25 bps in the chamber?
Now to tell you the truth. I’ve forgotten myself in all this excitement. But being this is a Fed 44 Magnum, the post powerful central bank handgun in the world and will blow your trade up.
You’ve gotta ask yourself a question: Do I feel lucky?
Well, do ya, punk?
“Isn’t it rich” Send in the Clowns, Frank Sinatra
Will it be a skinny purple tie ala the Beatles in the early 1960’s
Or a fat purple tie ala the 1970’s?
Will it be a skinny 25 bps or a fat 50 bps?
Total consumer credit jumped by $25 billion in July and reached a new all-time high of $5.1 trillion.
Total consumer debt has doubled in 14 years.
Credit card delinquencies soared to 9.1%, the highest level in 12 years.
But the entire financial media twiddles their thumbs as to whether it’s gonna be a 25 or 50 bls cut.
Greenspan fiddled why the Fed collected kindling for the Fed for the next crash.
The Bernake contaminated er contained it.
Janet “we’ll never have another crisis in our lifetime” Yellen played a mean mahjong muppet game
With the rest of the weekend at Bernie’s governors.
And Powell as the richest Fed Chair, naturally as an attorney, takes the Fed Put and pivots it where the moon don’t shine.
Speaking of which today is a Lunar Eclipse.
The Luna Ticks are likely to be magnified and embellished today.
The Fed is incremental by nature giving them optionality unless hell in a handbasket is on their doorstep.
The implication is less action than markets hope but dovish lip service replete with purple tie.
If markets pop as hedges are removed they fall back lower and end on a red note—
It would not be surprising to see a 100 point SPX range today.
If the index kisses 5730 there is potential for a major reversal as 573 is one full price cycle on the SPY up from 481, the January 2022 top.
That said, 567, the all-time high, squares out with this week.
SPX tested 567 again yesterday striking a nominal new high before reversion to leave a signal reversal bar.
Consequently, on a WEEKLY basis, downside follow thru over coming hours/days triggers a weekly Soup Nazi sell—a breakout over the last 20 bars (in this case weekly, followed by a jackknife to the downside).
This 566/567 level is significant.
Why?
666/667 SPX is the 2009 bear low which our all-time SPY high here is 566/567 and they vibrate/vector each other on the Square of 9 Time/Price Calculator.
Both of these numbers align with the November 13th 199 low in the 1929 crash AND square-out with mid-September.
Square of 9 Wheel
Purchase your own Square of 9 Wheel. Shipping to US only. Contact Jeff for shipping outside the US.
Buffet and Jensen (NVDA) are selling stock hand over fist.
In fact NVDA shows what may be a 3rd lower high, or what I call a Power Surge sell signal.
Checking SMH, the semi-conductor ETF, shows a series of lower highs and lower lows since it left a Key Reversal Day on 7/11…which came up ‘craps’ for the chips.
July 11th was the second Key Reversal Day since June 20th.
So the second mouse got the cheese for the bears on July 11th.
The black arrows point to a 15 trading day cycle which defined a high the other day and every drop since the top. 15 degrees is one hour of the 360 degree circle as 360 divided by 24 (hours in a day) = 15 degrees…used by sailors to navigate.
360 degrees down from the SMH 383 high is 220.
540 degrees down cubes out at 192.
Today, September 18, Fed Day squares out with 223/224 where SMH closed.
Grab a bag of popcorn and watch the largest generation of market players in U.S. history think they can get out or risk before a collapse.
Oh, and the sequel’s going to be blood curdling as the buy the dippers buy alllll the way down once 5450 is snapped.