"Database Liquidation Alert: Why This Selloff Could Be Just the Beginning"

KR Opinion

The markets have experienced a massive reversal wave, with WaveTech database recording over 3,000 sell orders in what appears to be the correction I've been discussing for some time. This movement could mark the beginning of a larger downside move for the indices as we enter August 1st, coinciding with the upcoming tariff releases. I've compiled a dashboard that displays the rates organized by country and region, but the real question remains whether this represents Liberation Day 2.0.

After spending the last couple of reports essentially trolling their effectiveness, it's time to return to serious business as we close out this week. We received employment numbers today, along with claims and continuing claims data that came in stable to slightly better than expected. The nuanced environment we find ourselves in continues to send mixed signals to market participants.

As I've consistently pointed out, the Federal Reserve has access to all these economic reports before their FOMC meetings. When Jerome Powell acts as though they're waiting to see how the numbers come out, it's pure theater. The Fed knows these results well in advance since they're not compiled ten minutes before release. These numbers are known factors during their deliberations. Powell reiterated several times that their primary mandate focuses on full employment and stable prices, making it obvious that he doesn't believe they have any responsibility for economic growth. This creates a logical disconnect since achieving full employment typically requires growth, which raises questions about their strategic thinking. The irrelevance of the Fed continues to reveal itself with each meeting.