Wednesday Wipeout – BOJ and FOMC Fail to Please Investors – Market Falls

Image result for tomorrow's headlines todayOh sorry, that's tomorrow's headline!  

Silly me, sometimes I get ahead of myself.  As I've been saying all week(s), the market is overbought and the Fed is boxed in and even the bat-shit crazy Bank of Japan didn't lower rates this morning and the only reason they were able to hold if is because they have been assured that our Fed will be raising rates at 2pm, effectively devaluing the Yen against the Dollar anyway.  

Still, not everyone is as certain as I am which is why I called for a short on the Nikkei Futures (/NKD) in our Live Member Chat Room this morning (7:02), saying:

We're back at 2,140, of course, along with 18,125, 4,825 and 1,230 – exactly where we were yesterday so it's just a reset by the TradeBots ahead of the Fed but now it's a lot more dangerous to short those futures, though still fun if you are careful enough to keep VERY TIGHT STOPS above those lines.   /NKD blasted to 16,800 and now back to 16,700 as the Dollar pulls back, still a good short there.  

As you can see, the Nikkei has already dropped 65 points and, at $5 per point, per contract that's a gain of $325 per contract for our Members and the Egg McMuffins are paid for already this morning (stop is now 16,650 to lock in $250)!  The other levels are the same ones we've been watching all week and we're still looking for the S&P in particular to give us 2,120, on the way to 2,035.

Evolution of Atlanta Fed GDPNow real GDP forecastDon't forget though, I'm an outlier in my prediction and our confidence in a rate hike today was shaken by yet another downward adjustment to our GDP outlook by the Atlanta Fed yesterday – from 3.5% to 2.9%, which is a 20% downgrade in GDP outlook since the beginning of the month – that's a very scary trend!  

So, if…
continue reading