After Jackson Hole, the market priced in a quarter-point cut. Yesterday’s Fed announcement confirmed the cut. And the market reacted accordingly. Stocks rallied briefly, but then fell, briefly.
Jerome Powell insinuated there will be two more cuts this year.
So where does that leave us?
In overbought territory like we were on Tuesday.
Tech stocks remain extremely overvalued relative to their moving average. (Source: Barchart)
In fact, if you follow technical indicators, the Nasdaq — a broad measure of tech stocks — is now “extremely overbought”… a level only seen in 0.4% of its history.
That’s less than half a percent, and it is likely the precursor to a correction when traders decide to take profits.
Our advice, “panic now, avoid the rush” and rotate your tech into hard assets such as gold , bitcoin, and commodities in general.
~ Addison
P.S. With further rate cuts on the horizon, traders will be rethinking their cash positions as yields drop.
This week on Grey Swan Live! with Adam O’Dell — at 2 p.m. ET, today, September 18, 2025 — we’ll be investigating the $10 trillion pile of cash sitting on the sidelines during the terrifying bull market on Wall Street.
Mr. O’Dell has been warning investors how impending changes to monetary policy are going to force savers out of cash and into the markets… or gold.
More details to come. Sign up now to become a member and join us for this week’s call.
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.
