12/10/2025
When the FED cut was announce at 1 00 CST, by the excitement in the Fox Business man on the scene one would have that an event rivaling
the Hindenburg explosion
Orson Wells War of the Worlds radio show
9/11
had occurred. And indeed the INDU later rallied 500 points. As said here yesterday the FED would drop the 4% FED rate to match the 3 month T Bill at 3.75% and that is what happened.
I think we can trashcan my idea that the market peaked back on Nov 12. this chart via the PMO suggests more rally tomorrow. Taking out the Nov 12 high means yet another five wave advance.
10 YR Note Yield
Isuggested yesterday that the 10 year yield would fall a bit with the rate cut, it did but not much. This speaks to the conviction of the bond market that higher not lower long dated yields are in order.
It is not the end of the week but we do have an updated weekly chart.
Note
RSI in top panel is about to move above 50%
PMO bottom panel is just a smidge from breaking to the u[side
Yield remains well above the down trend line in red
Sorry Donald, higher not lower rates lie ahead
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