Stocks Emerge From Bear Market As End Of Fed Rate Hikes Priced In With Recession Looming

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There was an interesting headline earlier this afternoon in Bloomberg, which tried to explain today’s furious rally which pushed e-minis right back out of bear market territory:

It’s a good headline, unfortunately it’s dead wrong, because while stocks did in fact snap a three week losing streak and also averted being down for a record 11 out of 12 weeks…

… with every single sector closing solidly green…

… the reason for said snapping was just the opposite of optimism because with a recession now assured…

… what prompted today’s furious short squeeze, because that’s what it was – a short squeeze of the most shorted names…

… was the market’s realization – helped by our explanation yesterday – that a recession means the Fed will end its hiking cycle much sooner than previously expected, most likely some time around the mid-term election…

Read More @ Zero Hedge HERE