The official start of the Fed rate-cutting cycle began today with a speech from Jay Powell. I rate him a 10, following the theme of this year's Olympics; however, he has to stick to the landing.

Powell stated that the time has come for policy to adjust and that the timing of rate cuts will depend on incoming data, the evolving outlook, and the balance of risk.

Powell confidently proclaimed there is "ample room to respond to any risks we may face" and expressed optimism about steering the economy back to 2% inflation while "maintaining a strong labor market."

Powell didn't mention being gradual, which leaves the door open for occasional 50 bps cuts. The more of those we get, the sooner we get back to quantitative easing - free money.

The Fed Put is back.

The 'Fed Put', as defined by the CFI, is the belief held by market practitioners that the US Federal Reserve will intervene with accommodative monetary policy to support the US equity market in the event of a rapid decline in prices.

The Fed is carefully navigating the balance between normalization and deterioration. It's evident that they, along with most in the markets, believe we are currently amid the former.

I'm not so sure, and I am worried about Main Street, but from an investor's point of view, it's letting the good times roll.

The Russell 2000 acts great here – there are opportunities but also landmines in the small cap space.