Hawkish Powell
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- In the Morning Capsule, we shared with you that Wall Street was positioned for a rally going into Powell’s testimony.
- The chart shows when Powell began testifying before the Senate committee.
- In the Interim Capsule, we wrote:
Powell’s prepared statement is hawkish. The statement is carefully written, leaving little room to twist Powell’s words.
- Powell caught Wall Street on the wrong foot. The hope that momo gurus would be able to twist Powell’s words to persuade the momo crowd to buy stocks has not materialized because Powell was so careful to not allow his words to be twisted.