1/12/2024 – A mixed day with the Dow Jones down 118 points (-0.31%) and the Nasdaq up 3 points (+0.02%)
Why?
Because the market will force them to.
I found this article to be of interest No Smoking Gun Yet To Justify Magnitude Of Fed Rate-Cuts
-
-
- US data from last week were not enough, from the perspective of the economy, to endorse the amount of rate cuts from the Federal Reserve expected by the market. Payrolls and the jobs data released last week demonstrated why the market – and the Fed – shouldn’t take it too seriously as a real-time snapshot of the labor market.
-
Keep raising rates….are you out of your mind? Yes and No!!!
Earlier in the day we updated our mathematical Time/Price 10-Year Note (TNX) Forecast You Won’t Believe What Interest Rates Will Do Next
In that forecast, while we do not share exact Time/Price targeting data, we do suggest that TNX hasn’t topped yet or that October’s high was not the final high. In other words, another leg higher is expected.
Here is the thing. The FED tends to follow the market and not lead it. Particularly the short end of the curve. Over the years I have presented a mountain of evidence to support this notion.
Meaning, if our overall TNX calculations are correct, and I have no reason to doubt them, interest rates are about to surge higher one more time. And if so, the FED will follow.
And that, ladies and gentlemen, should get very interesting.
Having said that, if you would like to find out what the stock market will do next, in both price and time, please Click Here.