Two Charts Provide a Picture

Following up on Themes

The Economic Fracture

The little hiccup in the market yesterday occurred at an important level and is the first indication of a change in the bounce since 12/24/18, other than a brief change on 1/29/19.

The Second Theme, 10 Year Interest Rates

Our view, Central Banks don’t know which way to turn. Global supply chains are disrupted and inventories of unsold goods are growing. Look for the 10 year yield to take the hit, and gain on both the 30 and 2 year like a visegrip. The FED in this setting will be stuck in inaction. Here is a chart that outlines the scenario.