As I’ve Been Saying

Suddenly the mainstream business/financial is shocked (shocked!) at the reaction following the release of the Fed’s minutes from its previous meeting just a few weeks ago. Here’s the thing…

All of what you are now seeing is the true reaction (as I’ve been arguing) to what the Fed has already signaled it intended to do (i.e., raise rates sooner than later and cut quantitative easing at a quickening pace ).

Over the last few days it’s just that the “markets” has allowed itself to be coiled for as long as it could (i.e., Year-end window dressing and Santa Rally shenanigans) till it could no longer, where it now must react and reposition to the new reality coming forth via the Fed.

Again, to make my case, Covid variants be damned. Everything has/was going along seemingly smoothly with record highs even with Omicron and more (as per to the aforementioned business/financial punditry) until at precisely 2:00pm EST today (Wednesday) with the release of said minutes – then: The sh#t suddenly hit the fan – and it’s been selling off with gusto ever since.

Or, as we said growing up: The sh#t got real!

In other words – there is no more confusion as to speculate if the Fed will, won’t or whatever. The minutes showed they were even far more hawkish than many alluded. So with that now in hand, what you’re now watching is the front footing of the “market” has switched from: hold on till they actually do it, to: Sell first – see if they follow through later.

Again, the stuff has truly just gotten real, very real. Maybe even far more real then they may have ever concluded possible. e.g., Cathie Wood.

The mainstream business/financial press has been fawning over Ms. Wood and her style of fund management incessantly for quite a while now. Here’s what I both wrote and picture I used to back my assertions in February of last year to both highlight the love affairs and my thoughts of it. To wit:

Here’s one thing I do know If Tesla is crashing and Bitcoin is having $10K plus swings, you know on “fundamentals.” Here’s something else that’s going to come crashing down.

“Maybe It’s Just Me” February 23, 2021
(Screenshot Source)

Well that was then, and this is now. How’s all that fawning turning out?

Here’s another picture showing how that “premium” insight (which I pointed out at the time in my noted article) has fared, again, to wit:

(Chart Source)

But then again, what do I know.

© 2022 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.