Another gap? Another gap to the upside? Another gap on another bit of news on China? Another gap on news of another meeting with China? Another gap on another meeting that may or may not happen with China? What’s the number? 30, 40, 50 meetings or announcements of meetings in the past 15 or so months? So why would markets keep listening?

BULLARD! Getting short shrift is that yesterday morning, James Bullard, a fedhead, came out and stated we need a 1/2 point cut in rates, not a 1/4 point cut from the upcoming fed meeting. Why is this man so important? He is Powell’s mouthpiece. Do remember we highlighted for you on several occasions that it was Bullard who was sent out around Christmas 2018 to leak a change of position of the fed from raising rates to “patience!” It was Bullard who was sent out to change the stance from “patience” to “lowering of rates.” That was back near the lows of June. So here we go again. We believe this is a big catalyst for the recent ability for the markets to gap up on what we would consider to be the same news we have heard dozens of times on China.

The big 4 will be gapping back above the 50 day this morning. Quite the important. Will be watching to see if it sticks. The good news is that we think there is a ton of cash out there and a ton of bearishness based on slowing economies around the globe, including here. Remember, it has been the easy money and easier money that have been the driver of markets for years. Nothing has changed.