12/13/2022 – A positive day with the Dow Jones up 103 points (+0.30%) and the Nasdaq up 113 points (+1.01%)

What a day…..

In our view it is rather simple. The FED used the COVID scamdemic to pump a tremendous amount of money into the system through various sorts of Quantitative easing, stimulus, PPP, zero interest rates and the such. Plus, with supply lines breaking down due to shutdowns, we saw quite a bit of inflation take hold in the system. 

Now that the money has worked itself though the system and the supply lines (for the most part) are coming back online, inflationary price pressures are disappearing. Recessionary winds and an inverted yield curve are also deflationary. Hence, others are beginning to see what we have been saying for some time….

“Stick A Fork In Inflation”… “Tomorrow Is The Last Hike This Cycle”: A Stunned Wall Street Reacts To The CPI Miss

“The better-than-expected core CPI number gives the Fed the cover it needs to signal hikes will be coming to an end. However, we still think the Fed will signal it will maintain rates near the peak for longer than the market is pricing, which means the front-end knee-jerk rally may not have legs, while the long end may retest recent yield lows flattening the curve a bit further.”

We couldn’t agree more. Just as we have suggested in our previous article This Little Indicator Suggests The FED Is About To Shock The Market the FED tends to follow the 3 and 6 month Treasury. 

And that side of the yield curve suggests the FED is either done hiking or will be very soon. We would expect to see that reflected in their statement tomorrow. Fascinating. 

Having said that, trying to make money based on what the FED will or will not do is incredibly hard. Our mathematical and timing work is not. It clearly shows what the stock market will do in both price and time over the next few months. If you would like to see, please Click Here.