Market up post Fed signaling rate hike slowdown

The markets were up on Wednesday after the Feds latest policy meeting signaled its likely to slow down rate hikes next month.

Lets look at how Fed policy historically impacted the markets:

The blue line is S&P 500 while the green line is Nasdaq.

You can see that whenever the Feds signals its going to slow down its rate hikes, the markets go up, and whenever the Feds signals its going to speed up its rate hikes, the markets go down.

The chart above shows the markets went up 3% on average after the Feds signaled its likely to slow down its rate hikes.

However, the chart above also shows that the markets went up 5% on average after the Feds signaled its likely to speed up its rate hikes.

Conclusion:

The days of the Feds being able to control the markets are long gone.

The Feds now only have one policy tool left in its arsenal: Its ability to spin the news.

If the Feds want the market to go up, the Feds just has to signal its likely to slow down its rate hikes.

If the Feds want the market to go down, the Feds just has to signal its likely to speed up its rate hikes.

The Feds can now just do what it wants, and it is no longer required to do what is best for the economy.

The Feds are playing a dangerous game.

If the Feds keep hiking rates while the economy remains weak, the markets will crash.

The Feds know this, and they know that the markets know this.

Therefore, the Feds are putting a lot of pressure on Trump to take it easy on the economy.

Trump has already made it clear that he is not willing to tolerate a weak economy, and that he wants to focus on getting the economy going again.

If the Feds want Trump to take it easy on the economy, the Feds need to pull the plug on its rate hikes.

However, the Feds do not want to do this.

The Feds want to pretend that their rate hikes are good for the economy, and they want to continue hiking rates.

The Feds are scared that if it stops hiking rates, it will lose control of markets, and it will lose its ability to spin the news.

The Feds know that if it loses control of the markets, then Trump will be able to blame the Feds for the markets crash, which will give Trump an excuse to fire the Feds, and to replace the Feds with a much more dovish Feds.

The Feds want the markets to go up, because the Feds want Trump to keep taking credit for the markets going up.

However, the Feds know that if the markets go up, it will be at their own expense.

The Feds want the markets to go up, but they do not want to be blamed for the markets going up.

The Feds want Trump to keep taking credit for the markets going up, but not at the Feds expense.

The Feds are in a tough spot, because Trumps focus right now is on getting the economy going again, and the Feds are making this difficult.

The Feds can only delay the inevitable for so long.

If the Feds keep hiking rates, the markets will eventually crash.

If the Feds want to prevent this crash from happening, then the Feds need to stop hiking rates.

However, the Feds want to keep hiking rates, because the Feds want Trump to keep taking credit for the markets going up.

The Feds want Trump to keep taking credit for the markets going up, but not at the Feds expense.

The Feds are playing a dangerous game, because the Feds are playing with fire.

If the Feds keep hiking rates, the markets will eventually crash.

If the Feds want to prevent this crash from happening, then the Feds need to stop hiking rates.

However, the Feds want to keep hiking rates, because the Feds want Trump to keep taking credit for the markets going up.

The Feds want Trump to keep taking credit for the markets going up, but not at the Feds expense.

Fed policy is now equivalent to a giant game of hot potato.

The Feds are trying to pass the hot potato to someone else without getting burned.

However, the Feds cannot successfully pass this hot potato to someone else.

The only way the Feds can prevent getting burned by this hot potato, is by dropping the hot potato.

The longer the Feds keep hiking rates, the bigger the crash will be when it eventually happens.

Crypto update

Bitcoin has pulled back to the range it was in before the big crash on Friday.

The pullback on Friday was a classic sign of panic selling.

Panic selling is followed by counter-trend rallies, and that is exactly what we saw on Monday and Tuesday (the bounce on Tuesday was very strong).

Bitcoin broke down from the 4-day descending triangle on Friday, and this breakdown led to a sharp drop.

Bitcoin is now back inside the 4-day descending triangle (mentioned in yesterdays report).

If Bitcoin breaks down from this triangle, then it will be likely that Bitcoin will go much lower.

However, if Bitcoin breaks out of the 4-day descending triangle, then it will be likely that Bitcoin will go much higher.

The 4-day descending triangle is quickly running out of time.

If the market does not break out of the 4-day descending triangle by this Friday, then it is likely that Bitcoin will continue dropping.

Gold and silver update

Gold and silver are trading at key support levels.

If Gold and silver can hold above these support levels, then they are likely to bounce.

However, if Gold and silver break below these support levels, then they will likely drop.

Any bounce in Gold and silver is likely to be very weak.

The Gold and silver markets are likely to remain very weak until the Feds actually stop hiking rates.

While the Feds keep hiking rates, the Gold and silver markets will continue to remain weak.

The Feds want a weak dollar, and a weak Gold and silver market, because a weak dollar and a weak Gold and silver market makes it easier for the Feds to keep hiking rates.

By raising interest rates, the Feds are tightening the money supply, and this tightens the Gold and silver markets.

If the Feds keep hiking rates, the dollar will become even stronger, and the Feds will have to tighten the money supply even more.

The massive pile of debt that the Feds has piled up is going to start collapsing at some point, and when it does, the Feds are going to be in big trouble.

The Feds are going to find themselves in a situation that they can not get out of.