Few will read this,but wanted to #Timestamp this commentary. Listened to multiple podcasts and read multiple reports this weekend. It appears only the few remaining bears made money last week. Correlations between stocks, bonds, commodities,FX, etc all reverted to 1, and all
2/ went lower. Is the equity market oversold? Maybe. But zoom out and look at a weekly 10 yr chart. This drop may be just a scratch. The FED meets this week and the fear is they go major Hawk-75 bps and 95 bln B/S drawdown. My chips are on 50 bps and a 60 bln B/S
3/ reduction. It makes little difference, the bath tub is being drained. Valuations are going lower. Unprofitable tech is looking for buyers. CCC debt is looking for buyers (BBB too). This is a treacherous market. IMHO, rallies are to be sold. For the brave, selling
4/ short on a tactical basis is also a strategy. Covered call writing is also an option to take advantage of these elevated vol readings. The major risk is the FED goes soft and the mkt rips. The yield curve and $JNK price action hold the key to the mkt. This time, the
5/ FED meeting is mega important. Tactical trading is the name of the game. Buy and hold is to be retired for the time being. @threadreaderapp unroll
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