BY ANDREW GIOVINAZZI
October 9, 2024
Yo Pit Crazies,
So the Chinese take a big holiday in September every year and when they came back they got a big surprise under the Christmas tree. Well sort of. Their stock market went ballistic on Chinese Central Bank intervention.
Then all the locals got back from vacation and sold. So much for Chinese Central bank intervention. Trading that type of move could come in handy.
Something not dissimilar is happening in the USA. The Fed lowered rates a couple of weeks ago.
They did not expect this.
The long bond has been tanking for 2 weeks
Fast forward to the USA and the Fed just set into motion rate drops. Since neither POTUS candidate is proposing spending cuts, although DJT is floating the balloon that Elon goes the TWTR route on Federal Gov’t bloat, bond buyers might not believe the inflation is over. With the 10 year back above 4%, bond traders are saying wait a minute, the government spending needs are endless. SPX has not made a new high since the Fed cut.
That brings us to the high VIX, SPX near all time highs situation we are in. In 2024, AI has trumped rates, recession fears and election mayhem. The rising tide of AI is now lifting all boats which was a larger reason I launched my Flash 10 list. I wanted to ride that long game there.
For trading the bigger, into event moves, check this out.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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