In the meantime, a Curve ball…

As Wall Street gets more and more imbedded in a Trump Victory, the Election setup gets even more interesting. Now the fear is the size of the deficits Trump would generate. Bonds blew out the bottom yesterday, wiping out last week’s potential turnaround.

The FED obviously has a problem, reducing Fed Funds rate did not accomplish anything.

Now the primary choices that they have for the first meeting after the election; 1) Most probable, do nothing, or 2) completely stop QT. Either would cause a Bit of Volatility.

In any case, since I feel Wall Street is going to get a surprise, that opens another door, maybe Bonds will be a buy near the yearly lows.