RE:Head FakeMy guess is that the White House has made it clear to the Fed that the market better not decline any further until the midterm elections. Another month like September and the outcome could be bleak for Biden's party.
That said, the inflation problem remains, but my guess is that the Fed will back off on hawkish talk until the election is over, at which time it will need to get back on track. There are no Fed meetings until after the election anyway, so no need to make noise for the next five weeks.
I agree with the Head Fake concept but if the rally continues all the way through October I'll be tempted to go short on the day before Election Day - stocks that have high Price to Sales ratios, and negative EBITDA - or long the U. S. Dollar - or short U. S. bonds.
Do your own DD.