Big Picture - Sorpresa, Sorpresa (Surprise, Surprise)

Sorpresa, sorpresa, FED Chair Powell did what was expected and cut interest rates by 0.25% basis points. He did this to quiet the mob and get everyone off his back and used an excuse to justify the means. The market had one of the smallest intraday moves that I have ever seen in my nearly 20 years of trading, or 8 years of caring what the FED does.

Since it was no shock, there was no surprise, if there's no surprise, there's no real move. Traders front-run the event and then no one cared after from a price point perspective. Now this is a bullish sign for the market as the last 20 times a rate cut has happened with a market at all-time highs, the market has been higher 20 out of the last 20 times. This is a classic "chicken or the egg" result—was it the cut or the market at highs already that had the market higher a year later every single time?

For us, we don't care why, we just want to ride the wave higher. Less questioning and more investing. The short-term backdrop often has some choppy action in the short term, yet we have not seen that yet. The key word is yet.

I do not want to continue to be the mother who tells the kids to be careful, but with every breakout working with extreme ease and each pullback getting insanely smaller with each climb. This trend can only last before there is a reset. Enjoy this easy market and take full advantage. It is basically a statement that we will test this MOAT to the upside but after that we should expect a pullback (5%+).

I want to keep saying this and reminding us because during easy periods like this, when that time comes, the shift in mindset tends to be "I'll give my winners more room" when it should be "I'm taking the gains here." Just like when newer traders want to buy the retest and we say, it needs to set up more. As the market gets tighter with each pullback, pulling the ripcord gets closer and closer, not further away.

The moment I see a break under 654 in the S&P I will be pulling my short-term ripcord and the active account will be sitting in cash. Long term does not change.

Sector-wise, Industrials continue to be the best sector out there chart-wise. Healthcare continues to base and Consumer Staples look as if they want to smoke support to the downside.

I will be spending the week in Italy enjoying my time here. I dropped my stop in TSLA back to breakeven as my goal will be to stay away from the screen and my phone as much as humanly possible. I have a BS in for TEM if it wants to take out ATHs, but that is pretty much it on my end. As when I travel, I aim to focus on the travel, not the trading.

I have alerts set for a bunch of top ideas for the week ahead, I will still be posting my market and top idea breakdowns every morning. We will still do our call Monday.

But if I don’t answer in a minute or two in the chat just know I’m either diving off a cliff into the Amalfi Coast or ripping a Vespa around some back country roads