It's obvious the Fed was way behind the curve. They still are. It's now apparent that the Fed thought by tinkering and experimenting, they could fix this mess. They couldn't. So yesterday, they capitulated. Finally. And now the markets are now pricing in a 50 basis cut next week, with 40% odds and going higher of a 75 basis point cut.
But the bears haven't capitulated! Every rally has been met with selling. But these gap down openings are the tonic to start and cure the ills of this market.
As Doug Kass states, "Buy the dips and sell the rips."
Until proven otherwise!