THE GREAT PARADOX: STRENGTH IS NOW THE ENEMY. 💀⚖️
Trump nails it. The market's operating manual has been ripped up.
Strong GDP? Beat forecasts? No shutdown fears? CLASSIC bullish fuel... that now sparks SELL-OFFS.
Why? Wall Street's mind has flipped. Good news = Fear of a hawkish Fed. Every strong data point is a potential nail in the coffin of rate cuts.
We're trapped in a perverse inverse reality:
· Before: Good News → Rally. Bad News → Sell-off.
· Now: Good News → Sell-off. Bad News → (Hope for Cuts) → Rally.
The market isn't trading the economy. It's trading the FEAR of the Fed's reaction function.
The Inflation Fallacy: A strong economy doesn't cause inflation; bad policy does. Preemptively choking growth is punishing success, not managing risk.
The Signal for Us: Don't cheer the headlines. Cheer the Fed's tone shift. The rally returns not when data weakens, but when the Fed stops being afraid of strong data.
Until then, expect turbulence on green numbers. This is the new game.
Trade the Fed's fear, not the fundamentals. 📉🔨