ridethepig | Consumer Staples (Chapter 2)The following diagram illustrates the breakup of a globalisation advance:
Since the retrace in VIX has found a hard floor into the 25 lows, we may characterise the advance as an endgame for our economic cycle purposes.
Now the erroneous nature of Volatility advancing can be seen. The effect of demobilising the consumer will weigh heavy on Equities, not to mention how companies position capital more defensively going forward.
Consumers are uncomfortable (at least from Q3/Q4 onwards) right on time for the stimulus to fade.
The following swing, which will also be quoted in the previous leg in DAX is another example. I will go over the flows briefly at this point:
Equities have now lost all sense of reality, the concussion in addition to Fed conceding far too much mobility; so this may rightfully be classified as the end of an economic cycle, or at least until capitalism returns from its sabbatical.
CCSA
ridethepig | Flatten the CurveA paradigm shift followed the "It's time" chart more rigidly than even I expected. Apologetically we can give the official ✅ for those following the example of dogmatism from @ridethepig and can see clearly how far we have come:
"It's Time"
📌 It can be said that the opening knee-jerk reaction from "The Great Lockdown" is over and we can begin to enjoy a return back to the old 'normality' (whatever that means). The unemployment rate has likely peaked here in this cycle, it is curious how this happens so often, the cycle nature of time and human behaviour allows us the ability to prove all kinds of flows and forecasts; but with certain classical variations, as in the present case.
So, given the huge development in claims, it is reasonable to challenge the highs of what is undeniably a historic crash. What can one learn from the flows, to fully understand this question we will need to begin digging a lot deeper.
Thanks as usual for keeping your support coming with likes, comments, charts, questions and etc!