The Jiggy Hypothesis - mytrbroadcast.com

I’ve used the term “Jiggy” for years. For those that may not remember where the term originated, it’s from a Will Smith song titled “Gettin Jiggy With It” back in 1997.

In what now seems like forever, I’ve used it to describe that moment in time when one force meets another and things begin to, well, get jiggy. I think you get the inference.

(Note: Hitting this area does not mean a directional move of up or down one way or the other. What it does imply, is there is a sudden realization that things may not be as bad — or good — as everyone has been assuming, and things suddenly become “jiggy” as the metaphor implies. It’s also that area when policy makers of all stripes suddenly realize this also and intervene in one form or another. The directional result of such is usually the follow through in direct proportion to the intervention or realization.)

Today, we have what may be another of those moments, but this is where jiggy can suddenly turn into FAFO moment. In other words, everything appears set to test my postulations once again. Remember when I put the “Jiggy” area on the S&P 500™ charts in prior? That time we went vertically upwards and still so to quite the extent.

So with that said, here’s a preview of what is happening as I currently write this, ready?

Question: Know what that is? Answer: Here, let me show you only pulled out for context. To wt:

In my last note I finished with the following statement…

These markets will not sell off until the market, for what ever reason via implied or tangible evidence, that the Fed either no longer has or, no longer can “have its back.”

Simple as that.

The reason this is far more poignant today is this…

These markets have been propelling into “To da moon!” territory for one simple reason (or fuel) I call “Hopium.” But once it’s expelled. Things start turning from rocket rides to resembling a roller coaster coming off the rails.

Will this happen now? No one knows, and those who’ve said it should have been happening far earlier (calling out myself here, also) have been answered with even more hopium added to the tanks in ridiculous amounts, once thought unimaginable.

Think I’m kidding? Read this and tell me this makes any sense in a sane world. Again, ready?

In just seven trading days, Nvidia has gained $900 billion of market capitalization and is now worth close to $6 trillion.
ZeroHedge

You don’t see miracles like that unless you’re reading scripture, not a stock story. Just sayin’.

So the issue here is: with a new Fed Chair (Kevin Warsh) that, supposedly, everyone believes is going to cut rates as a first order of business (i.e., do the President’s bidding) and the “markets” have all been trading on that leaning, what happens when the bond markets go from “jiggy” to “Oh Sh#t!!” territory?

All I’m suggesting is to read my last line from my prior note and think it through for yourself, because…

There’s a thin line between no longer has and — no longer can.

But the results are the same, again, simple as that.

Disclaimer: The content published across MYTR reflects opinions, analysis, and perspective.
It is offered to inform thinking and encourage consideration—not to provide instruction, direction, or individualized advice. How any idea is interpreted, evaluated, or applied remains the responsibility of the reader, listener, or viewer, as applicable.
Responsibility for decisions—and their outcomes—begins and ends with the individual making them. Please read, or re-read the “Policy Notes” page for any questions or clarifications.