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Below are the Opening Notes and Bond Market segments from last Sunday’s edition of Notes From the Rabbit Hole, NFTRH 530. Jerome Powell was actually more firm than I expected. Atta boy Jay! Aside from my prognostication the more important stuff (IMO) begins at the 4th paragraph. That is where I put on my tin foil hat and tell what I think. It does seem to dovetail with what we saw today out of the Fed chief.
Opening Notes: FOMC at Center Stage
It is likely that the Fed is going to raise the Funds rate on
Wednesday because this is a confidence game and a Fed suddenly showing
weakness and doubt could exacerbate the market’s already frayed nerves.
As a side note the 76% reading of CME futures traders expecting the hike
to happen has not changed in the last few weeks.
No, not for me. I’m doing just fine. I’m talking about THIS guy (click the image to see it larger…………duh.):
For those unacquainted with WSB parlance, an “FD” is a “Faggot’s Delite.” (Hey, it isn’t my term; I’m just telling you the truth). This is the puerile way they describe very high-risk weekly options.
It seems to me the guy basically raised a million bucks from friends and family and decided to go “all in” on Micron technology calls. Incredibly, he has embraced the “it’s not a loss unless you sell” insanity.
I’ll just save you all the suspense and tell you this guy is utterly screwed.