The Gilmo Report

July 31, 2019

July 31, 2019

The Fed gave the market what it was looking for today in a 25-basis point Fed Funds rate cut, but the market responded with a big, fat sell-off. After some initial and very typical post-Fed spinning, the NASDAQ Composite Index bolted -163.59 points to the downside during Chief Fed Head Jerome Powell’s press conference. This produced a distribution day off the peak on heavy volume.

 

 

I already voiced my views on the absurdity of current Fed policy, if not Fed policy in general during the Age of QE, on Twitter today, so I won’t waste any time rehashing all that in this report. You can check my feed at @gilmoreport on Twitter to review this. Right now, I’m more interested in seeing how various asset classes, such as stocks, bonds, commodities, etc. respond to the latest Fed move.

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