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What are we to expect from FOMC today? 25BP is what I know t...

What are we to expect from FOMC today? 25BP is what I know the FEDs want as they can't service their current and future debts with high interest rates. But 50BP I feel might be their move as inflation has yet to peak despite all the promises since 2021. Let's see tonight.

Yields have inversed on the 7yr and $Cboe Interest Rate 10 Year T Note(.TNX.US)$ and the spread between the 2yr and 10yr is getting tighter signalling incoming inverse curve which I have been warning since 16th Jan. Yesterday yield skyrocketed together with the indices. 10yr and NDX usually moves inversely. So which is making that fake move up? Yields have a bullish divergence whilst NDX has a bearish divergence. So I think we got the answer for that.

Barclay's $iPath Series B S&P 500 VIX Short-Term Futures ETN(VXX.US)$ halt is another red flag. Issuance capacity maxed out is an excuse. Reports have shown that their VXX limit is at 8.16Bil whilst latest known limit they carrying is only at 800mil. 10% is not max cap. Something larger definitely brewing here that we do not know about. VIX futures have a bullish divergence, so do they see it spiking up so high that increased volatility would pose a risk to them? Hmmmm.. hint hint..

Crude has completed the pullback and was near the 55EMA before it rebounded today. Bullish divergences also formed on $Crude Oil Futures(JUN4)(CLmain.US)$. Will it go up to retest the 147? Let's see. But if crude were to reverse upwards, indices will plummet again.

HK stocks rebounded as I warned on 14th Jan that we would see an incoming huge relief rally. Thats why I said do not short HK stocks on the 14th. Is this a reversal signal? I highly doubt so. This is a huge relief rally after that capitulation phase. How did I know of that relief rally coming 2 days before? Lack of buyers due to fear. Too many shorts thinking it's easy money. Yeah it's easy to guess who gets squeezed. Boom. MMs always squeeze the side that has more retailers. This relief rally is to collect buyers and stop out the late shorts to prepare for the next leg down.

As always trade safe and invest wise!

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