139s and perhaps lower as this will begin to unravel the Equity markets as we approach the prior highs. The Fuse for the next leg down in the Equity Complex is being lit. And the reason for the RUSH to Wall Streets higher FIlls. Things are quickly coming apart in the REPO Markets as well. This sets up the potential for a large Rug Pull... 1.71 - 1.76 and...
With DX Strength coming from the JPY Pair... The Red Swan continues to build from our months long indicated Vector - China. The CCP announced they will only bail out Domestics. ETF Passives hold, indirectly, a far larger stake in China's Economy then is openly acknowledged. Never has the South China Sea - been this active militarily. TSML... in questions as to...
The Bond Markets are revolting once again. Taper or not, doesn't matter, Inflation has taken hold. Either way the FED is being challenged. Heads they lose, Tails the lose. Expectations are what they are... Demand Push, Supply Pull. Demand Pull, Supply Push. C O S T Strangles. Jerome is done.
As the 10Year Note approaches a pivotal juncture, the DX begins to show signs of a DX Strength Trade. The 1.41% Level should provide a challenge to the YCC analogue. With the effects of Stimulus largely abating and the $3.5 Trillion Stimmy for "Infrastructure" in question... We are setup for some extreme Volatility.
10yr Yields peaked at ~1.70 as the Federal Reserve began YCC (Yield Curve Control) well in advance of recognition by the Retail Bond Market. With a shortage of T-Bills and Janet Yellen attempting to Fund the Fiscal Malfeasance out the Curve in order to reduce Short Term funding. With CASH mounting in Money Market Funds, there remains a large pool of Cash with...