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.
