2) dangerous but we're prob not in recession now or entering within a M(?).
Consider LEI components. Shown is 6M change.
Soft component (consumer expectation) largest negative contribution. Employment component almost flat.
I've been watching for sudden weakness in high ...
3) frequency economic data since last summer.
While some data weakened, if I were told last summer that jobless claims would be near lows and there wasn't a big downside NFP next 6M, I would've said very unlikely.
Still "a few bad job prints would seal the deal?" I think yes.
4) When? More unsure.
Why? Excess savings (runs out this summer), businesses hoarding labor, lag in tech layoffs appearing in data etc.
Continue to look at high frequency data. Especially employment, official & leading indicators. E.g high 200's initial claims may be a trigger.
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3) high number of sidelined bulls waiting for that correction that might not come. Or happen from much higher levels. This matched broad sentiment that many wanted/expected a correction.
SLV flow today supportive of data. Could barely wait a few hours and few % to buy.
Also low 1st response rates have no corr with later NFP revisions but future revision vol does seem much higher if initial response rate is > 10% lower. Just not directional.
Would be interested in your thoughts vs monte carlo.