The question virtually all investors have been asking is whether the US economy is gaining or losing momentum. The answer to that question put us squarely back into our 'bad news is good news' trading paradigm as the Gross Domestic Product (GDP, which measures the value of everything we produce) expanded at a pitiful 0.7 percent annual rate from October to December.
This proves demonstrably that the Federal Reserve did make a mistake with its December bump up in interest rates, as the path of GDP is clearly falling from left to right on the charts.
Read MoreThe Fed is freaking out about financial markets
As you may recall prior to the December Fed hike, the major potential drawbacks were addressed ad nauseum in the press. Two of the biggest potential negatives were as follows:
1) Further unwanted strengthening of the U.S. dollar, and;
2) The fear that the next move(s) by the Fed would overshoot the necessary and plunge the economy into recession.