Post-Fed Breakdown: 25 bps Rate Cut + QE Restart = Risk-On Fuel

5 日前

Post-Fed Breakdown: 25 bps Rate Cut + QE Restart = Risk-On Fuel
The FOMC just delivered exactly what risk assets wanted:

25 bps rate cut

Restart of QE with $40B/month in Treasury purchases

This is the liquidity cocktail that historically lights up small caps, high beta, and speculative momentum stocks. The liquidity train is rolling again.

🔹 What This Means for Markets:

QE = immediate expansion of liquidity in the system

Lower rates = easier credit + higher equity multiples

Small caps (IWM) historically outperform in the early QE phase

High beta + speculative names tend to catch the strongest flows

This is the exact macro environment where markets rip even if fundamentals are messy.

🔹 What I’m Watching:
1️⃣ IWM – Small Caps

If we get a retest in IWM, I’ll be looking to buy calls.

These QE environments are where the Russell 2000 becomes a rocket ship.

2️⃣ Momentum Leaders:

WULF – Strong relative strength, liquidity-sensitive, crypto-adjacent.

EOSE – A pure rate-sensitive, high beta energy storage play.

Both names should catch strong speculative flows if the market confirms.

3️⃣ The QE Effect:

When the Fed buys Treasurys, liquidity bleeds into every corner of the market.

Historically, QE ignites multi-week rallies in:

Small caps

High-beta tech

Energy storage

Crypto-adjacent equities

Meme/spec cycles

🔹 My Game Plan:

Wait for clean setups — don’t chase the first candle.

Look for IWM dips, not spikes.

Keep WULF and EOSE on top of the momentum list.

Align trades with liquidity — don’t fade QE.

The liquidity faucet is turning back on. This is where swing traders make their year.

10 時間前

トレード終了: ストップロスに到達

I got stopped out on this on friday. The market just got nasty on that AVGO and ORCL news combo. We are entering a new phase of the market maybe where we need to diget for a bit and mix up the longs and shorts and do quicker trades