Fed cuts rates, Gold at All Time Highs...And Some Trading Ideas

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1️⃣ FED CUTS

The big news this week was the Fed lowering interest rates by 50 basis points. We are officially in a rate cutting cycle with another 50-75 basis points coming by the end of 2024. Easy money policy inbound. The graph below shows the Fed Funds Rate is currently at 4.75% - 5% with a 50% probability of 75 bps in further cuts by December.

There’s even a 24% probability of 100 basis points in cuts!!!

So how did markets take the news of aggressive rate cuts? They RIPPED!

S&P 500 made new all time highs, uranium getting a fresh burst of energy (pun intended), Nasdaq outperforming the S&P 500, Russell 2K outperforming the Nasdaq, crude oil recaptured $70, copper pressing the top of its range and threatening to breakout, and….the story of the year, ladies and gentlemen….is GOLD. Gold is quietly making new all time highs week after week…and NOBODY is talking about it! That is the way I like it…and that is how Bull Markets get started!

2️⃣ GOLD

For those who have read the Tobin Report since day one, you know how I feel about gold. It’s such an obvious trade and yet one of the LEAST crowded trades. That makes it even more attractive. Gold is a MUST own moving forward. But I’ll get more into that another time.

WHAT NEXT?

So the Fed cuts 50 bps with markets at all time highs. What happens next?

The graph below shows the 20 times the Fed cut rates when the S&P 500 was within 2% of an all time high.

Results? 👇

🔶 HIGHER a year later ALL 20 TIMES and UP 13.9% on average.

Wednesday was the 21st time.

The path may not be linear, but why should this setup be any different? Mind the risk. Trade the breakouts. Take stocks and run with ‘em. We are still in a bull market. This may change, but until it does………….roll with it.

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3️⃣ META - Breakout

Quick update on META. I recently wrote an article about the possibility of an imminent breakout in META.

Let’s see how it’s doing now…

👇

LOOKS LIKE A BREAKOUT TO ME!

I’ve been adding to my position in META. If you like breakouts, this is the one.

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4️⃣ CHART ANALYSIS

If you would like me to cover any specific charts in a future article of The Tobin Report, CLICK THE LINK below and let me know.

TICKER SUBMISSION

5️⃣ Now For Some Charts & Trades…

Here are a few charts I’m watching for some explosive moves…