Post-Fed Breakdown: 25 bps Rate Cut + QE Restart = Risk-On Fuel Post-Fed Breakdown: 25 bps Rate Cut + QE Restart = Risk-On Fuel
The FOMC just delivered exactly what risk assets wanted:
25 bps rate cut
Restart of QE with $40B/month in Treasury purchases
This is the liquidity cocktail that historically lights up small caps, high beta, and speculative momentum stocks. The liquidity train is rolling again.
🔹 What This Means for Markets:
QE = immediate expansion of liquidity in the system
Lower rates = easier credit + higher equity multiples
Small caps ( AMEX:IWM ) historically outperform in the early QE phase
High beta + speculative names tend to catch the strongest flows
This is the exact macro environment where markets rip even if fundamentals are messy.
🔹 What I’m Watching:
1️⃣ AMEX:IWM – Small Caps
If we get a retest in AMEX:IWM , I’ll be looking to buy calls.
These QE environments are where the Russell 2000 becomes a rocket ship.
2️⃣ Momentum Leaders:
NASDAQ:WULF – Strong relative strength, liquidity-sensitive, crypto-adjacent.
NASDAQ:EOSE – A pure rate-sensitive, high beta energy storage play.
Both names should catch strong speculative flows if the market confirms.
3️⃣ The QE Effect:
When the Fed buys Treasurys, liquidity bleeds into every corner of the market.
Historically, QE ignites multi-week rallies in:
Small caps
High-beta tech
Energy storage
Crypto-adjacent equities
Meme/spec cycles
🔹 My Game Plan:
Wait for clean setups — don’t chase the first candle.
Look for IWM dips, not spikes.
Keep NASDAQ:WULF and NASDAQ:EOSE on top of the momentum list.
Align trades with liquidity — don’t fade QE.
The liquidity faucet is turning back on. This is where swing traders make their year.
