CHART OF THE DAY: Last Week Was Major #Quad3

During #Quad3 Stagflation, Bond Yields remain suppressed and High Yield Spreads remain wide:

1. UST 10yr Yield dropped -8 basis points last week to 0.63%
2. High Yield OAS spread widened +3 basis points last week to +501bps over Treasuries

What else happens during #Quad3 Stagflation?

1. Tech (XLK), which is still our Top Long for #Quad3 in Q3, was +3.6% last week to +8.6% in the last month alone
2. Financials (XLF), which remain our Top Short for Q3, lost another -3.5% last week with a 1-mont return of 0.0%

0.0% is not good. But it could have been worse. What if you were long the following #Quad3 Shorts last week?

1. SMALL CAP (Russell 2000) was -1.6% vs. LARGE CAP GROWTH (NASDAQ) +2.7%
2. LEVERAGE (High Debt to EV) was down -3.3% last week and is only +1.3% in the last month
3. SLOW GROWTH (Bottom 25% EPS Growers) were down -2.8% last week and is -0.2% in the last month