DX / DX1 - Friday's Dollar "Less Transitory"The Taper of Bond Purchases begins @ $15 Billion, it will be the shortest "Taper" in History.
Over and done before the announced Timeline of 7/8 Months.
They'll either slow it dramatically or reverse course Mid-Point due to - you guessed it... "Policy Error"
Not that it amounts to a drop in the Bucket given O/N Repos are approaching $2 Trillion, recently cresting
$1.8 Trillion with no signs of abatement.
Secretary of the Treasury, Janet Yellen announced Friday - "Inflation will be with
us throughout 2022."
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The Global Supply Chain "Crisis" - yes it is now a "Crisis" continues to create issues for People around the
Globe.
Rolling downhill, the wreckage is Far and Wide.
Elevated Inflation Data sent the Dollar in a rather large vertical - +0.8475% - a shove higher, on a
Friday no less.
The 10Year Note Futures (ZN) are performing the squatty potty routine, attempting to hold on to 130.
A feat that has been ongoing for weeks on end. To some, this is "Bullish."
Dunno seems to be Selling it has worked here from the 134s, some Traders appear to enjoy arguing
with success.
Personal Income declined 1% M/M - Spending increased 0.6% - PCE Core @ 30 Year Highs
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The Dollar came off the 50SMA @ the Lower Trend Line of the rising Channel.
Backtesting the Breakout... expected.
Volatility next week is going to be "Frustrating" as Jerome would echo and has.
Pesky Inflation, from the Pests @ the Federal Reserve.
The DX is gaining strength and momentum... oops. It was all but ignored Friday.
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The 007s are back, true to form, it's to the Moon again. Insistent to lose their Capital
to the scrouges of Inflation. Have it again Baggies, we'll take your Capital and thank you again.
Our scorecard, there on the back nine... 8 under Par while the 007s gorged on Hot Dogs off the
10th Tee. Eventually, too many Manhattans & Dogs had the careening into the Pond on Hole 12.
At 18, they were 22 over, but insisted the bet was 36 Holes... it wasn't - revisionism is the new
truth.
Keys were handed over to the pride of Aston Martin's... with all of "M's" goodies in tow.
One drunken Bondie needed a ride to his Estate, didn't feel a thing when ejecting his seat
in the parking lot, prey/predator/splat.
BONDs will PRICE INFLATION again.
It is dead ahead, TLT Filled its Gaps as we indicated on the FR of 139, time to begin hunting
the 139s to 134s.
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We see the DX Price Objective just shy of 98.
Oh my... that is up there... what, pray tell would become of Yields?
Higher, Higher, Higher with INTENSIFYING VOLATILITY.
This is not an environment the Equity COmplex will escape unharmed.
We suspect the actual harm will be greater than before.
The Dollar has been monkeyed with for several weeks, FX - JPY / 6e, the
uptrend for Uncle Buck appears ready to surge.
Indicators for FX, Equity Market Volatility Event - Equities will be smoked
again, and WHY the RUSH to A higher Fill. The Silly Phase is well underway.
Retail Bulls remain in the UTL Camp, a bonfire of the Vanities.
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We are patiently waiting, sticks are being stripped of bark, Marshmallows
being plated, nearing time to begin the Roast.
