The Two-Face Market

The world’s wildest reality show (the markets, that is) gave both bulls and bears something to think about on Wednesday as stocks surged and the dollar tanked. All of this came courtesy of September’s Federal Open Market Committee meeting minutes, which revealed members were concerned their inflation outlook may be too aggressive (partially because of the surging dollar), which in turn would mean the Fed will remain accommodating even longer than was previously estimated.

Because this bifurcated market continues to transmute bad news into good, stocks took off like a scalded monkey to the upside, closing the day at absolute highs. The split personality of the US stock market over the past six trading sessions invites a not-unjust comparison to the famous Two-Face Batman villain; for traders and active investors, this means prudent risk management survival tactics should be the one and only goal.

Read my entire analysis here: https://www.tradingfloor.com/posts/us-stocks-the-big-two-hearted-market-1924808

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