Markets Are Booby Trapped Ahead Of Today's Fed Decision
Make no doubt about it, all eyes are going to be on the Federal Reserve’s decision about interest rates later today.
Make no doubt about it, all eyes are going to be on the Federal Reserve’s decision about interest rates later today - and most strategists feel as though they have the market action pinned down. If, of course, by pinned down, you mean “could land anywhere within a 10% range”.
For example, J.P. Morgan recently offered up a ludicrously detailed and nuanced take on what the day’s action could hold, broken down into 6 different situational scenarios of different rate hikes and commentary choices, all of which basically boiled down to the grand conclusion that “markets could crash lower or rip higher 10% depending on what the Fed does.”
To quote Snatch, “You could land a jumbo fucking jet” in that range.
My analysis looks past that brilliant work of sell-side art and makes the case for how, in my opinion, the Fed has already “booby trapped” markets ahead of their decision today. Let’s discuss what I think.