PRICING A TRADE DEAL

There's no doubt investor confidence is rising evidenced by a growing number of stocks recovering (BREADTH)

BREADTH THRUST

In less than 30 days the Number of stocks making new 30 day highs increased by 50x

In less than 30-days, the percent of stocks trading above their 50-day moving average increase by 10x.

Positioning has room to IMPROVE

• Weak positions means there's a lot more room to the upside.

👇🏽Active Fund managers positioning is accelerating from very low levels before any trade deals have been made. A dovish Fed should accelerate this process.

👇🏽Bullish Options Positioning is accelerating but I'd like to see one more spike and roll over to flush out the PUT protection.

The Fed can kill the Rally BUT a Trump Trade Deal can bring it right back

• we don't want to see a hawkish policy statement or press conference. We don't want to see Powell uncertain or unclear about monetary support.

WE WANT TO HEAR POWELL COMMUNICATE "TARIFFS ARE TRANSITORY" !!!
(A dovish fed will see through tariff inflation and ensure liquidity support if something were to break.)

👇🏽 If the VIX gets above 28 during the FED MEETING the market will be pricing in a worse case scenario.