Coach Mark here.

My brother Matt and I have been in the “The Fed is Done Camp.” Yes, they have been out there spewing out their proverbial “higher for longer” rhetoric lately but we have both felt they are done. This “higher for longer” rhetoric post the most recent Fed meeting has helped propel yields and the dollar even higher and added to general market volatility.

In the last 24 hours there has been a slew of dovish rhetoric coming out of the Fed. There has been a clear change of tone from both Fed Vice Chair Philip Jefferson and Fed official Lorie Logan yesterday. The Fed turned dovish in a big hurry and this has broad market ramifications.

This is a Mountain Dew market. Everything is extreme. The number of puts bought and shorting in recent weeks was extreme. The move up in the dollar was extreme. The move up in yields was extreme. If the market starts pricing in a “New Fed” you can expect that counter move to be equally extreme.

Have a fantastic Tuesday!

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Chart of the Day: The Dollar (UUP)

In Mountain Dew markets everything pump, pumps, pumps until they cannot pump anymore. This doesn’t mean trends immediately reverse but often signals the strong upward movement is over.

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