TheoTrade's Tale of the Tape: Get Ready for the "Great Reflation" This Week

Hello TheoTrader,

Stocks bounced from an oversold level late last week. As I settled back into my desk over the weekend, I was able to take full stock of the situation.

It's important to realize that some of the biggest rallies in stocks often occur during bear trends. These come from short squeezes. Remember, every current short seller is a future buyer, by definition.

We have another important week ahead, especially with the Fed meeting. It seems as though the White House is trying to force the central bank's hand into rate cuts, but let's not pretend like the market is innocent here.

I think the rate cuts will come, but not this week. That said, it looks like some money is flowing into a certain area of the market that could benefit from a dovish Fed. Here's what I mean…