As expected, the Fed cut the fed funds rate and the discount rate by 0.25% each. The accompanying statement regarding inflation concerns was largely unchanged from last month. The Fed further elaborated that readings on core inflation have improved somewhat and that trend should moderate in the coming quarters.
Apparently, that was not good enough for the Wall Street crowd, and the markets reversed course with the Dow, at one point being up 178 points, closing down 12 points.
Our Trend Tracking Indexes (TTIs) fared as follows:
Domestic TTI: +1.23%
International TTI: -2.85%
That means, domestically, we’re back to watching further trend developments to see if the upper band of the neutral range (+1.50%) will be broken, which would then generate a new Buy signal.
Right now, we need to continue to be patient; I will focus on those areas that already have started their own individual trends regardless of the positions of the domestic and international TTIs.
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