Thursday, I wrote that my call for a top had developed as expected and that I was “On Crash Alert”. So far, so good. I think that the Monday speech By Fed Governor Lael Brainard, will be dovish(not hawkish as speculated on in the weekend financial press) so as to slightly mollify the markets after Friday’s drubbing. It would make no sense to “pile on” with more bearish talk about hiking rates next week, because the markets would drop even more and then the FED would look tone deaf if they hiked. This way, with a slightly less hawkish tone than Friday’s comments from Eric Rosengren, the markets can stabilize and bounce back a little. Don’t be fooled or complacent, I still believe the market is going to drop precipitously over the next month or two, especially if the FED hikes rates next week, which I believe they will.
Thursday, I wrote that my call for a top had developed as expected and that I was “On Crash Alert”. So far, so good. I think that the Monday speech By Fed Governor Lael Brainard, will be dovish(not hawkish as speculated on in the weekend financial press) so as to slightly mollify the markets after Friday’s drubbing. It would make no sense to “pile on” with more bearish talk about hiking rates next week, because the markets would drop even more and then the FED would look tone deaf if they hiked. This way, with a slightly less hawkish tone than Friday’s comments from Eric Rosengren, the markets can stabilize and bounce back a little. Don’t be fooled or complacent, I still believe the market is going to drop precipitously over the next month or two, especially if the FED hikes rates next week, which I believe they will.