Bulls Take Control After Fed Goes Big

Follow @MrTopStep on Twitter and please share if you find our work valuable!

Every week, MrTopStep invites traders to an “Own the Close” contest where the closest guesstimate where the SPX will settle on Friday’s 4:00 cash close.

The winners get a free week's access to the MrTopStep Chat and trading tools. Enter your guess now!

Our View

I posted that there was a lot of stress in the air on Twitter, and it was a unanimous yes. It's one thing waiting for a jobs number or a CPI number, but waiting on the first rate cut in four years is a much bigger deal. It's 1:52, and the ES just rallied up to a new high and is falling back, and yes, there is stress in the air. I was wrong about the 0.50 bps cut. I did a tweet before the Fed headlines that everyone knows the Fed was behind the eight ball, and despite me not thinking the Fed would do it, they did. Am I surprised? Not really. Why? Because it's an election year, and the Fed wants to lower rates two more times; at least they had the guts to do it. I didn't get my hundred-point move, but I got 80.5 of it. I caught the rip higher and then got short. The only thing I can say is... they sold the news!