Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
One way to simplify the complex on a Fed Policy Mistake (i.e. tightening into #Quad3 Stagflation and/or an outright Q2 of 2022 #Quad4 slowdown) is the opposite of what you saw last week – when the market discounts that it will be:
A) A US Dollar breakout on my TREND Signal and a correlated and TRENDING deflation of Commodities … with
Ironically, but not surprisingly, all Powell did was set himself to be wrong again on inflation by being the short-term catalyst for another reflation. Gotta love front-running The Game!