For those of you who don’t already know the Fed decided to lower rates by a quarter-point to 4.50%. It was the second straight reduction this year. As expected, immediately following the announcement the market experienced several violent whipsaws only to finish the trading day substantially higher. The S&P (SPY), Dow (DIA) and Nasdaq 100 (QQQQ) finished the day higher 1.0%, 0.8%, and 1.4%, respectively.
Now What?
Did you notice how the bond market responded to the announcement?
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Kindest regards,
Andrew Crowder, Chief Options Strategist, www.crowderinvestments.com