Wall Street got its version of an early Christmas present by finally getting a long wished for rate cut by the Fed. Not only that, the cut was wide and deep, encompassing the Fed Funds rate and the Discount rate at a hoped for ½ point rather than the acceptable ¼ point.
As the chart above shows, the reaction was fast and furious with all major indexes scoring solidly.
Our Trend Tracking Indexes (TTIs) rallied as well and moved above their respective trend lines as follows:
Domestic TTI: +5.38%
International TTI: +2.17%
It will be interesting to see if this move to the upside will be supported in the coming days (and weeks) by more buying which is necessary to support this breakout from the current sideways pattern.
We are holding all current positions subject to our sell stop rules and are adding where appropriate.