It’s all fun and games until the bulls get hurt #0DTE…
- RATES – monster move on the short-end of the curve with 2yr Yield now +45bps in a WEEK to 4.50% as the former Perma Bull narrative of a “Fed Pivot” renders itself fictional. I don’t think next week’s CPI is going to be nearly dovish enough to change that. Long-end of the curve (10 and 30yr) are back ABOVE @Hedgeye TREND resistance levels 3.62% and 3.72%, respectively
- GOLD – obviously no likey Nominal and/or Real Rates rising on the Long-end of The Curve (Silver doesn’t either), so we’ll see how this plays out in the short-term with Macro Tourists panicking on CPI, Rates, etc. while not understanding the longer-term Cycle (i.e. worse than expected #Quad4 Recession) which should pressure long-term rates lower, faster, from here in the next 2-3 months
- RUSSELL 2000 – re-entered #Quad4 Crash Mode this week at -21.6% from The Mother of All Bubble (#Quad2) highs with SPY down for 4 of the last 5 days since The Mother of All-Time US Call Option Buying (last Thursday!) and Hedge Fund Short Covering. Going on 24 years of being in The Game, I have never seen so many players forced to cover Shorts and chase Longs like they did last week
Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.34-3.76%
KM
