Worst Day In More Than a Year…?

You saw it today in the charts… In 3 hours of non-stop FREE FALL.

At 1:30 PM EST $SPY, $QQQ and were seemingly margin called... 

In less than 3.5hr SPY plummeted $11.09 or 2.12% (The biggest single intraday move in a year)

That’s why this is a special email.

If you were wondering why this happened, there was a perfect storm of bearish headlines:

• Israel beefs up defenses, on alert after Iran revenge threat

Israel is on high alert and has beefed up its military preparedness, suspending leave for all combat units, amid fears of Iranian retaliation after a suspected Israeli airstrike in Damascus this week killed Iranian generals. 

While Iran has sworn revenge for the strike on its embassy compound in Syria, one of the most significant attacks on its interests there, Iranian sources suggest Tehran's response will be calibrated to avoid wider escalation. 

However, the incident has raised concerns about the potential for a broader conflict, with Israel warning it will "respond with force" to any attacks. 

The tensions have rattled Israeli financial markets, with stocks down around 4% this week and the currency weakening as investors brace for fallout from heightened hostilities between the arch-enemies.

• Is the FED not doing rate cuts the whole year?

A Federal Reserve official, Neel Kashkari, deflated expectations of multiple interest rate cuts in 2024, stating the Fed may not lower rates at all this year if inflation remains elevated and economic data stays strong. 

His comments rattled markets, as investors had been anticipating rate cuts later in 2024 after the Fed raised rates aggressively to combat high inflation. 

Kashkari said “If we continue to see inflation moving sideways, it would make me question whether we need to do those rate cuts at all.” Contradicting the Fed Chair's signal that cuts were likely in 2024. Upcoming jobs and inflation reports will be crucial in determining if rate cuts occur as forecast by most economists or if the Fed holds rates steady.

This is how it looked in the markets today…

Not to worry though…

April is actually one of the best performing months of the year. 

BUT, it will all come down to how the market digests tomorrow’s Non Farm Payroll data will determine the trend for the rest of the month if not the entire year.

Now, let me tell you…

Subscribe to our YouTube Channel and tune in to our LIVE stream next Monday at 12p EST to see how we're planning on taking advantage of this pivotal moment in the market and find out if we’re shorting this market when the last 100yrs of data says otherwise 👀 

Talk to you tomorrow.

Rooting for you,

Paper Gains.