With markets down a bit, should be prepared for his "uber-dove speak" jawboning. (Do we ever run out of adjectives for, "even more dovish than the last time"?) 1. Suggest being careful with your shorts.... 2. Consider being more aggressive about buying for short-term pop 3. Careful on monitoring "follow through" to rally today. Last time he flapped (presented to Congress... one day House, next day Senate), market rallied on both of those days... but the next day sellers hit the bids. Maybe same again this time. FWIW...
You know he's going be dovish as fu$k. He will turn the down market into a bright green one once he starts yapping away. He will make sure the markets get to hear what they want. I'm damn sure in the last 48 hrs he has decided to change some opinions on the words he will spew. He has too since markets have taken a slight move down. Remember markets are only allowed to go up!!!
Some of Powell's "flappings" are scheduled in advance. I've often thought that his words might be modified to the "current market" if anything appeared to be negative, such as now.... we're not in BIG negative territory, but the Nas is down ~10% from recent high. There might be a clue in all of this. The last time he flapped, of course the markets rallied on those days. But the next day, sellers turned the market back. That hasn't been the usual. The BIG FINAL TOP... is likely to come when the markets sell aggressively into Fed Speak and Fed easing. That is, "the Fed's cache has finally worn thin" and the markets view it as the chance to "get out while the gettin' is still good". Don't know when that will be... though we've recently seen a hint of that at least in the short term.
That's because there will be "inflation up the ass", but he doesn't want anyone to act upon it.... LYING BASTARD! Since when has inflation been "temporary"? (It's progressive and escalating until stopped by monetary restraint.... and looks like we ain't having none of that!)
Lies lies lies. And more lies. No one has a damn clue how quick these markets could collapse if the fed had to raise rates to play catch up with inflation.
Powell has basically said, "we can't afford the risk of doing that".... so the only choice is "inflation and currency debasement into oblivion... almost everybody gets bankrupted!". Bottom Line... The Fed doesn't want to take the blame for the mess they created!! (I keep hoping they/Fed will wise up and put a stop to all of this carnage, but I'm not holding my breath.)