BY MARK SEBASTIAN
May 7, 2025
Hey Traders,
Overnight futures are up big because President Trump is sending our man Scott Bessent to meet with the Chinese.
But there may be other reasons to be bullish into Friday.
TLT found the floor:
I told you yesterday bonds might have the FOMC painted into a corner. It appears to be the case, as they got bought when they threatened 4.90% yield on the 30 year.
I strongly believe that we are going to see a dovish Fed on Wednesday and will be looking for ways to go long.
As bad as Tuesday looked, the S&P 500 held the 50 DMA and is actually above Thursday’s close. We really have not had that much selling.
This feels more like a breather. Obviously if I’m wrong and the FOMC really doesn’t know what they are doing … things are going to get ugly fast. I’ll be ready for that.
But the base case SHOULD be a rally today.
Join me for the FOMC today at 2 p.m. ET by joining our VIP list here.
Reviewing Yesterday’s Trade
No Trade.
…Today’s Outlook
As I pointed out over the last few days, with the FOMC in a corner I think they come out dovish and we get a pop. I might set up a super overnight ahead of the conference.
I’m that convinced … be prepared.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
