“Instability” is Jerome Powells middle name. Over the past two years I have repeatedly pointed out that on August 10, 2020, the FED had the information that told them to stop QE. Now on September 27, 2022, they had the info that pointed out that FED funds at 3.343 % was enough.
Today’s Sector Sort updated: The pattern continues with the FED followers trading very short term, in fact since the 10/14 bottom retest we see them going for winners in the 20-21 bubble, Fangs, T&E, WB Fang, etc while continuing to punish the Climate Change Technology area.
And, Here is the chart you want to watch over the next few days, it is an index made up of the 2 yr bond and SPX, equally weighted. Two markets massively oversold.