When Tech Becomes More Important Than The Fed

Don Kaufman here. 

Wild day in the markets yesterday - and I mean WILD.

Here's what happened: Fed speaks, markets dump 60 points, everyone panics... then Microsoft and Meta report earnings after the bell and BOOM - we rocket right back to where we started.

Think about that for a second. 

The Federal Reserve - you know, the people who control interest rates and basically run the economy - made their announcement. 

The market didn't like it. 

Sold off hard.

Then two tech companies report quarterly numbers and completely erase the Fed's impact in minutes.

Microsoft was supposed to move maybe 30 points on earnings. It moved 35. Meta was supposed to move $41. It moved $65.

When billions of dollars in options get repriced that fast, you're not just seeing a "good earnings beat." You're watching the marketplace realize it got the math completely wrong.

But here's the bigger picture: We just witnessed the day tech officially became more important than monetary policy.

Microsoft hit a $4 trillion market cap. 

Meta's closing in on $2 trillion. When companies get that massive, their quarterly updates literally move the entire economy more than Fed decisions.

"In Tech We Trust" - forget the dollar.

Now, Apple and Amazon report tomorrow. 

If those go well too, this market is going to feel completely bulletproof. 

Two more bullish moves and we're probably smashing to new highs regardless of what Powell says or does.

The rotation is already happening. 

Money flowing out of financials, industrials, consumer staples - all piling into NASDAQ. 

It's like everyone's running to one side of the boat.

WATCH: I break down my complete approach to trading these massive rotation days in my latest training session

One more thing to watch: The VVIX (volatility of volatility) hit 100 yesterday before getting crushed back down to 94. 

When that metric cracks triple digits, I start paying very close attention. 

Usually means we're due for some fireworks.

Tomorrow's going to be interesting. 

Amazon's already getting bid up in after-hours on absolutely nothing - just anticipation. That stock better deliver or it's going to get hammered.

This is the kind of market where fortunes get made and lost in single sessions.

Hit me up to join the group - members get my live alerts when I spot setups forming on days like this

To your success,

Don Kaufman