Early Morning Update

“As long as we continue to learn, welcome new ideas and ways of doing things, and continually expand our understanding of ourselves and the world around us, then we are engaging in the ultimate creativity of the self.” – 365 Tao: Daily Meditations

The key question the markets have to deal with after yesterday FOMC Member Williams is whether he essentially gave us a lock on the 50 cut or if indeed, as the NY FED suggested, his speech was purely academic and therefore strongly suggesting either incompetence, being completely out of touch with reality or both.
As discussed on Twitter, we favored long indices o/n yesterday for moves back into previous day range and once we saw momo, headlines and the stars lining up, the case was pretty compelling to hold partials for more or a melt-up into OPEX and Free Money Friday. Once again, we do not think these moves are neither normal nor healthy but we are here to trade price. We do no get to decide what hand we are dealt but as humble students of the markets, we strive to take advantage of current context, dynamics and moves.
remember we’ve got Bullard and Rosengren to close the show today before the start of blackout period. ALl in all, our base case has not changed and even if we remain nimble and tight, we like tactical fades of yesterday highs in BONDS and GOLD. We will review how we played this EOD yesterday and how we plan to structure trades in today’s webinar session.
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Wishing you a great day ahead.

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