[COMPLIMENTARY] Top 3 Things | UK / Rates / VIX

New closing lows for both SPY and QQQ as we enter the heart of the #Quad4 #ProfitRecession…

1. UK – panic “meetings” aren’t going to solve for economic and market gravity – GBP/USD tried to rally on the Truss/Kwarteng emergency “office of responsibility” meeting, LOL, and is now straight back down to -0.5% on the day with immediate-term downside towards $1.051 GBP/USD – Shorting more Copper vs. my Long Corn position on that (bought more USD on red, Shorted more EUR on green)
2. RATES – falling knife catchers, unite! There’s an increasing number of “buyers” of UST Bonds out there as the Bond Market crashes! Both UST 2yr and 10yr Yield Risk Ranges continue to signal HIGHER-HIGHS at 4.38% and 4.02%, respectively, ahead of what should be another “higher-than-hoped-for” SEP CPI report in October (Steiner reviewed the math on our Q4 Macro Themes call yesterday)
3. VIX – knife catching ends in P&L death-terms when volatility is in the F-Bucket. It’s not just NASDAQ Vol 37 or VIX 32 – it’s Treasury Bond Vol 150 (MOVE Index) with immediate-term upside to 161! And obvious raging FX Vol with panic attacks at the British, South Korean, Chinese, etc. central bank “meetings” – immediate-term downside in SPX towards 3552

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.44-4.02%

KM