“We know that we’re going to get some kind of a cut on Wednesday.” – 01:14
Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire to discuss the current state of the U.S. stock market as it approaches a significant week with the Federal Reserve’s anticipated rate decision.
Peter expresses that the market feels strong, suggesting that the current rally could be a “melt-up” or a short-covering event fueled by anticipation of the Fed’s actions. He notes that historically, the market tends to respond positively during cutting cycles, and he predicts that multiple rate cuts could occur by the end of the year.
As the conversation progresses, Peter raises concerns about emerging signs of economic slowing, which could lead to a hard landing. He emphasizes that while the market is trading at record highs, there is always the potential for a pullback, especially if economic data begins to weaken.
The discussion shifts to Tesla’s recent pre-market performance and Elon Musk’s renewed focus on the company. Peter interprets Musk’s actions as a demonstration of confidence, suggesting that this could positively impact Tesla’s stock, which has faced pressure recently. He advises caution, noting that while buybacks can sometimes present shorting opportunities, in this instance, it may be a favorable time to buy.
Remy and Peter also touch on the ongoing competition for the title of the world’s richest person between Larry Ellison and Elon Musk, as well as the broader implications of the Fed’s decisions on various asset classes. Peter underscores the significance of Jay Powell’s press conference following the rate decision, warning traders to prepare for volatility as the market reacts to the news.