SPY Dip Buy Setup; $700+ Target Into December
This is a massive dip buy play for $SPDR S&P 500 ETF Trust(SPY)$ and target is still $700+ by December. I think even sooner now.
Let's start with why SPY went down to $683 and why I'm adding more SPY calls:
1. Lack of Consensus = Uncertainty
Powell says there were strongly differing views, it means some members may want to keep rates higher for longer, while others want to cut.
Markets hate uncertainty especially around Fed policy.
Unclear direction → volatility → investors pull back from stocks.
2. Hawkish Risk Inside the Fed
If there’s division, it implies hawkish members still have influence those worried about inflation rather than growth.
That raises fears the Fed might delay rate cuts which is not good. We want more rate cuts!
3. Confidence Signal
Markets want to see a unified, confident Fed that’s clearly pivoting or staying steady.
“Strong disagreement” implies the Fed isn’t sure whether inflation is defeated a warning that policy easing is not guaranteed, contradicting dovish hopes from previous remarks.
Its initially bearish because of the uncertainty, higher inflation risk and government is still shutdown.
But, JPOW is pumping more money into economy and this starts Dec 1. This is extremely bullish into November. Earnings has been extremely strong too.
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