Is everything fine just because the rate cut is here? Wake up, the real killer move hasn’t even come out yet.

This rate cut wasn’t even something the Fed wanted to do; Powell is extremely reluctant about it. Here’s the key point—after the rate cut is implemented at 3:00 AM on Thursday, Powell will hold a press conference at 3:30. I bet he’s going to throw out a bunch of hawkish comments at that conference, pouring cold water on the market and paving the way for a “pause in rate cuts” later. When it comes to suppressing the market, this old guy never holds back.

Why will he definitely turn hawkish? The logic is simple:
After this cut, the interest rate will drop to around 3.5%, which no longer counts as “restrictive policy.” But look at the inflation data—it’s still above 3%, far from their 2% target. Plus, the economic data isn’t that bad, so what reason does the Fed have to keep cutting? Knowing Powell, he won’t make a move unless he absolutely has to.

So my judgment is: after the rate cut next week, the market will likely take a sharp turn downwards, and we’ll see a significant deep correction.

What should you do?
If you’re aggressive, you can set up 2x to 5x long-term short positions during the rebound.
If you’re conservative, just sit tight and wait until the market bottoms out next year to buy in.

Why wait until next year? Because the real liquidity flood won’t happen until the second half of next year:
Trump will officially take office, a new Fed chair will be in place, and aggressive easing policies will kick in. That’s when crazy rate cuts and a flood of liquidity will mark the start of a 3- to 5-year major bull market.

In short: This is a trap right now; next year is the real opportunity. Don’t be fooled by the surface of the rate cut—the hawk’s claws are still hiding, waiting to strike.