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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
B) A breakout in High Yield Spreads, Credit Risk, etc. alongside a breakdown in the 10yr Yield to lower-lows

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!

CHART OF THE DAY: Idiosyncratic Pandemic Inflation Will Prove Transitory  - el9