The Market Is About To Change
Arguably the biggest catalyst of the year is here, and it has the potential to shift the entire market.
Every so often, a catalyst comes along that changes the trajectory of the market for the foreseeable future.
That catalyst is imminent. And I expect the market to change in a big way.
Right now, there are two doors for the market and Kevin Warsh.
One door leads to a dovish Fed, lower rate expectations, broader participation, and a continuation of this big rally.
The other door leads to a hawkish Fed, higher rate pressure, tighter financial conditions, and likely some broad market selling.
Tomorrow, Warsh chooses the door.
If you recall, I published an article nearly one month ago titled “The Next Trade Will Be Different” linked here. My thesis was that the market was about to broaden out and new sectors were about to participate, outside of the AI trade.
Since then there has been a major broadening.
Over the last one month:
RSP (Equal weight S&P 500): +4.97%
SPY: +1.80%
Now, I think the market is about to change again. In the age of AI markets change quickly…
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
This is where I posted my three new positions in real time.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article I’m going to discuss the trade from here, charts, what I expect from Warsh, what it means for the future of the market (both near and long term), how I’m thinking about the market looking past this week, my biggest focuses, the names in my portfolio I’ll be looking to potentially sell in the event of a pullback, and more.
This is arguably the biggest event of the year. It’ll pay to be prepared.