It is absolutely clear to us this rate cut is motivated to placate a clueless and unprincipled president and also including Wall Street traders.  We call them the “market socialists” who look for government intervention to set prices rather than allowing the market to work its invisible hand.

Housing And Shelter Now Unaffordable For Many, Especially The Young

If you are dumbfounded why young families are priced out of the housing market and it takes a $70k annual salary to rent a 2-BR apartment in California,  your understanding will begin with today’s interest rate cut.

Only in 22 counties in the United States is a one-bedroom home affordable to someone working 40 hours per week at federal minimum wage.  —  CityLab

We suspect the Fed’s cave to the White House and the market whining for easier financial conditions will only complicate the above problems.

We Are Data-Driven

If economic and financial conditions were tighter we would be less harsh but they are not.

The Chicago Fed’s National Financial Conditions Index (NFCI) shows financial conditions are over 20 percent easier than when the Fed tightened in December.   Yes, their pivot eased without acting but come on, man!

Let markets clear, let prices mean something!

We suspect, even if the Fed cuts today, conditions are going to tighten, in part, because of the cut.  Stranger things, no?

Trading 

This the hand traders and investors are dealt, however.   Trade accordingly.

We believe it is time to spank the strength as the S&P moves into our selling zone.

           Chicago Fed’s National Financial Conditions Index (NFCI)