Thread by @Decentralizedk1

The current macro environment has brought a lot of uncertainty to investors around the globe. From supply chain issues to inflation & unemployment, the end result of this economic boiling pot will all come down to the federal reserve and its monetary policy stance.

Our job as investors is to identify & anticipate this trends to be 1 step ahead of the “next big turn”that’s the objective of this thread.

Here we have the 10yr treasury yield chart,
Ass you can see, yields have been respecting that downward mega channel for the past 30 years.
I also marked the periods where fed tightened monetary policy & show some charts of how equities reacted.

Also keep an eye on the RSI resistance level which has helped anticipate tops with almos 100% accuracy & the a,b,c type move from the pink trend line that played out during 2004-2006 & 2018 QE tightening. This gives us a clearer idea of where we are headed.

Inflation has put selling pressure on bonds due to investors leaving fixed income markets looking for assets that yield above inflation returns.Fed announcing a tightening is signal that they are following the timeline and could trigger a crash as rates rise into2022(yellow🟡)

this crash would be necesary because the fed needs to come in with massive stimulus in order to service federal debt by keeping rates low and inflating it away as it happened after the 1929 depression.
#CTM #Bitcoin #stocks @jclcapital