CHART OF THE DAY: Understanding the Market Pendulum

The Pendulum is both a great model and metaphor for macro and markets, particularly in the present instance.

1. The pendulum of consensus narrative/positioning regularly swings into fade-able asymmetries (ie all the way to one-side or the other). 
2. As market structure and flow dynamics have become increasingly predominant, those asymmetries have been amplified.
3. I’ll tire of reiterating that Tier1 Alpha’s Market Structure data remains the #1 product you didn’t know you needed, but that day is not today!
4. Mapping the cyclical motion of a pendulum (right side of the chart below) offers a better intuitive understanding of the post-pandemic cycle.  

While modeling underdamped harmonic oscillation may sound mathy and abstruse it is, for our purposes, conceptually straightforward.