Financial Stress - ProblematicFor the First time since FEB of 2020, the Stresses are now beginning to mount.
The highest ROC since the beginning of this prior 30% Decline.
GSCO has leaked a 2X acceleration for the TT - courtesy of the FED.
____________________________________________________________________
Asset Prices cannot withstand uncertainty.
IN 2019 the FED Leaked to GSCO they would Hike Rates 4x's.
Instead, they Cut 2 x's.
_____________________________________________________________________
TwoLip Mania cares about the FED's Policy, although it appears Good News remains
Bad News.
Inflation is feeding upon itself - the FED is willing to tolerate Inflation until it unsettles
the Hoi Polloi and their overlords.
_____________________________________________________________________
Undercurrents....
Financialstress
St. Louis Financial Stress IndexRecently the STLFSI retreated to its near-historical low levels. RSI is indicating a divergence that could indicate the index will head higher. Markets are also looking poised to resume their volatile trend to the downside after rallying this year.
About the Index:
The STLFSI measures the degree of financial stress in the markets and is constructed from 18 weekly data series: seven interest rate series, six yield spreads and five other indicators. Each of these variables captures some aspect of financial stress. Accordingly, as the level of financial stress in the economy changes, the data series are likely to move together.
How to Interpret the Index:
The average value of the index, which begins in late 1993, is designed to be zero. Thus, zero is viewed as representing normal financial market conditions. Values below zero suggest below-average financial market stress, while values above zero suggest above-average financial market stress