Joined November 2021
Include

Only show posts containing:

Exclude

Hide posts containing:

Time range
-
Minimum likes
BREAKING: September PPI Inflation unexpectedly rises to 6.3%, above expectations of 5.3%. Core PPI Inflation rose to 5.0%, above expectations of 4.4% PPI inflation is now at its second highest level since November 2022. The odds of rate hikes are rising sharply on the news.
380
1,208
457
7,900
998,262
The US can't afford higher rates... Warsh knows that. - In the next 12 months, ~$10T of USTs need to be rolled. - The average coupon is ~3.3%. - The US10y yield is ~5.3%. Rolling that $10T at today’s US10y level would add $200B in annual interest costs, and that’s before you factor in the interest burden on an ongoing $2T annual deficit. Volcker could crush inflation with double‑digit rates because inflation had already driven debt to GDP down from about 120% to ~30%. Today we are back at 120%... First you inflate the debt away, then you raise rates to kill inflation. We are in the inflation part of the cycle... you know what that means
48
99
14
598
84,816
PolyBee retweeted
Most traders practice everything except the thing they actually want to get good at. They backtest for hundreds of hours. They annotate old charts. They study setups in hindsight. Then they wonder why live trading feels difficult. You become good at what you practice. If you want to get better at live trading, you eventually have to practice trading live.
22
22
377
12,742
Nowhere to hide in this context except in USD GOLD? Bearish because of higher rates Stocks? Heavy because of higher rates Bonds? Heavy because of higher rates The only place to be is USD because the FED has to tighten financial conditions
2
3
1
41
2,452
PolyBee retweeted
Why are you great at spotting setups in hindsight, but struggle when the market is actually moving? Because that’s what you trained for. Backtesting trains backtesting. Hindsight analysis trains hindsight analysis. Live trading trains real-time decision making. Your skill reflects your repetitions.
22
35
1
392
11,948
THIS IS QUITE INTERESTING. Gold's next rally could start sooner than expected. And the reason is US 10Y yield. Historically, Gold and the US 10Y yield have traded inversely to each other. - 2007: US 10Y yield peaked, and then Gold rallied 200%. - 2018: US 10Y yield peaked, and then Gold rallied 80%. - 2023: US 10Y yield peaked, and then Gold rallied 210%. And during the US 10Y yield uptrend, Gold has suffered drawdowns. - 2012: US 10Y yield bottomed, and then Gold dropped 30%. - 2020: US 10Y yield bottomed, and then Gold dropped 20%. - 2026: US 10Y yield bottomed, and then Gold dropped 30%. Now, with US bonds showing strong demand in auction, the yield could be close to peak. And if that happens, the stock market will start its downtrend while commodities will start their next rally.
28
89
13
562
66,931
BREAKING: September Fed Meeting Minutes show that most Fed officials expect another interest rate hike by year-end. All 19 Fed officials backed the September interest rate hike. Almost all Fed officials see inflation risks tilted upward, with some warning AI could push demand above supply and increase inflation.
148
293
43
2,817
350,508
Most traders build their trades upside down Retail process: 1. Open a chart 2. Find a pattern 3. Feel the FOMO 4. Enter 5. Get stopped out Professional process: 1. Identify the macro story 2. Understand the central bank picture 3. Know what validates the setup and what would invalidate it (scenario A vs B) 4. Use technicals to find the entry Technicals aren't the foundation They're a tool in the process Context decides whether a setup even deserves your attention
4
6
39
1,010
Why Stocks Exploded Higher Today The strongest explanation for today’s equity rally is not that a massive wave of new money suddenly entered the financial system. Several pressures weighing on valuations eased at the same time while investors aggressively returned to large technology and AI related stocks. Crude fell sharply. Long term Treasury yields declined. Inflation fears eased at the margin. Volatility remained subdued. Bitcoin, copper and other risk assets also strengthened. Together, that created a powerful risk on environment. Oil Changed the Immediate Macro Equation Lower crude reduces the probability of the most extreme inflation outcomes and improves expectations for future business and household costs. Markets do not need diesel, freight or transportation expenses to normalize immediately. They only need investors to believe the future environment may be less damaging than previously expected. That appears to be what happened today. The important caveat is that refining constraints and extremely expensive diesel remain. Lower crude therefore provides relief without proving the broader energy shock has been solved. Bonds Confirm Relief But Not A Fed Pivot The Treasury market provides another important clue. The 10 year yield fell toward 4.96%, reducing some of the discount rate pressure on equities. But the 2 year remained around 4.74% and barely declined. That distinction matters enormously. The market is removing some longer term inflation and term premium pressure without substantially changing expectations for restrictive near term Federal Reserve policy. The Fed has not pivoted. The bond market is saying conditions became somewhat less hostile, not that monetary policy suddenly became easy. Technology Magnified Everything Large semiconductor and technology companies posted substantial gains. Because the S&P 500 is weighted by market capitalization, moves in its largest companies have an outsized influence on the index. That helps explain how equities can surge even while much of the broader economy remains uneven. And more than $1 trillion being added to stock market capitalization does not mean $1 trillion of cash actually entered stocks. Marginal transactions can reprice trillions of dollars of existing shares. The Cross Asset Signal Today’s combination is remarkably coherent. Stocks rose. Bitcoin and other crypto assets rallied. Copper strengthened. Treasury yields declined. Oil fell. Gold weakened. The dollar remained firm. That does not resemble a classic recession panic or geopolitical flight to safety. It looks much more like investors reducing the amount of near term inflation and financial risk they were pricing while continuing to embrace growth and AI exposure. What Could Make This Fragile The biggest question is whether cheaper crude eventually translates into cheaper delivered energy. If diesel remains extremely expensive, refining capacity stays impaired and transportation costs remain elevated, the inflation constraint has not disappeared. That would leave the Fed restrictive even while markets celebrate lower crude. The rally becomes far more convincing if energy costs continue easing, credit remains stable, market participation broadens and yields decline without growth collapsing. If crude is instead falling because demand is weakening while diesel stays expensive and credit conditions deteriorate, today’s rally will look very different in hindsight. The market did not suddenly decide the economy is healthy. It decided the immediate downside looked less severe. That was enough to produce a powerful rally. Whether it becomes something more durable will depend on energy, credit, yields and whether the broader economy eventually confirms what equities are already pricing.
Over $1 TRILLION added to US stocks today as the Nasdaq jumps +1.88%. Nasdaq is now just 0.70% away from its all time high, and S&P 500 is just 1% away.
30
54
3
332
86,994
Japan is preparing the field for the next intervention It can come anytime tho, there’s NO way to time it precisely It can happen next week, in 3 weeks, or later But the point is this: Japan (with the US support) wants a stronger Yen Why would you fight that?
7
2
1
38
3,029
FED RAISES RATES BY 25 BPS — INFLATION REMAINS ELEVATED • FED RAISES THE KEY OVERNIGHT RATE 25 BPS TO 3.75%–4.00%. • THE FOMC VOTE WAS UNANIMOUS. • FED SAYS INFLATION REMAINS ELEVATED AND DROPS ITS EARLIER DESCRIPTION THAT ELEVATED INFLATION WAS PARTLY DUE TO SUPPLY SHOCKS. • FED SAYS THE RATE INCREASE WILL SUPPORT A TIMELIER RETURN TO THE 2% INFLATION GOAL. • US ECONOMIC ACTIVITY IS EXPANDING AT A SOLID PACE. • DOMESTIC SPENDING REMAINS RESILIENT DESPITE ELEVATED UNCERTAINTY. • PRODUCTIVITY GROWTH IS STRONG, WHILE CAPITAL INVESTMENT REMAINS ROBUST. • JOB GAINS HAVE KEPT PACE WITH THE WORKFORCE, AND THE UNEMPLOYMENT RATE HAS CHANGED LITTLE. • FED: “THE COMMITTEE WILL DELIVER PRICE STABILITY.” • KEY TAKEAWAY: THE FED IS PRIORITIZING INFLATION CONTROL WITH A 25-BPS HIKE, WHILE ACKNOWLEDGING THAT ECONOMIC ACTIVITY, SPENDING, PRODUCTIVITY AND INVESTMENT REMAIN RESILIENT.
3
12
1
39
13,931
Warsh, get serious or lose the bond market He set the standards high with his Jackson Hole Symposium speech saying: 1. Price stability is something the Fed has to actually deliver, not just talk about 2. He said the latest inflation readings do not tell him that underlying trends have meaningfully improved 3. And he said that financial conditions are not broadly restrictive So let’s do something very simple… Let’s take his own standard, the one he chose, and apply it to the situation in front of him right now. Is inflation moving back toward 2% clearly and quickly enough? No! 1. OIL is too high 2. Core PCE is still above 3% Ok, so if financial conditions are not restrictive enough and inflation is not resolving fast enough to the 2% target and the recent readings do not tell that the underlying trends have meaningfully improved Well… What should a central bank do in the face of that? Hike! The risks of not hiking are now far greater than holding steady Patience is running out The FED has to send a message!
4
2
42
1,448
🚨This Is How a Carry Trade Unwind Starts And It Started Today An absolute bloodbath was witnessed in Japan’s financial markets. Short-term JGB yields went VERTICAL today. The 3-month yield smashed 1.25%, highest in 31.5 YEARS and the 6-month hit 1.34%, highest in 31 years. Two years ago these were NEGATIVE. Now they’re ripping like a bond crisis is already here. At the same time SoftBank got DESTROYED. Shares plunged over 15% intraday, closed down 10.7%. Roughly $8 billion wiped off Masayoshi Son’s fortune in one session. SoftBank owns ~13% of OpenAI, right in the blast zone as AI labs suddenly start talking “slowdown.” This is not isolated. The BOJ is hiking. Japanese short rates are exploding. The cheap-yen carry trade that funded years of US stocks, Treasuries, and risk assets is starting to unwind. Japan is one of the largest foreign holders of US Treasuries. When they sell (or stop buying) to chase higher domestic yields or cover losses, US yields spike too. Higher US yields + carry unwind + AI narrative cracking = the exact cocktail that produces a bloodbath. Markets spent months pricing infinite AI acceleration and infinite cheap Japanese money. Both assumptions just took a body blow on the same day. From global stocks, bonds, banking, derivatives to AI, Oil and Global Energy. The extent of Japan’s free money catastrophe is unfathomable. If the BoJ’s @yutokanzakireal warning indeed happens, we are going to see the biggest global financial bloodbath in decades.
彼らは言う、ハウスはいつも勝つ。 今回、日本はただハウスに対して賭けるだけではない。 日本はハウス全体を倒す。 今回、システム全体がマージンコールを受ける。
33
383
24
1,597
143,541
I have a very-out-of-consensus view: The Federal Reserve is unlikely to raise interest rates this week. My baseline: 1. As demonstrated in the July Federal Open Market Committee (FOMC) meeting, the center of gravity of the committee was to hold, not to hike. 2. Several FOMC members seem to share the view of Governor Barr, who said: “At the September FOMC meeting, if trends in the data give me some confidence that inflation is moderating on a path to two percent, then I think we can take a bit more time to assess our policy stance. However, if inflation appears not to be moderating sufficiently, then I think we should act decisively to raise rates.” So the question is whether the August CPI report moved the center of gravity of the FOMC from holding to hiking. It is certainly possible that it did, and I wouldn’t be shocked if the Fed does raise rates this week. But my expectation is that the Fed will hold. Five points: 1. A HIKING CYCLE IS DIFFERENT THAN A ONE-AND-DONE HIKE The Fed rarely does one-and-done hikes. So the right question is not, “Should the Fed raise rates next week?” Instead, the right questions are: “Should the Fed begin a hiking cycle next week?” and/or “Should the Fed do a one-and-done hike, which the Chairman will have to explain as a one-and-done hike?” Viewed this way, the odds of a hike next week should be a lot lower than the 87 percent current priced in by the bond market. The August CPI report might have been enough to move some FOMC members from favoring holding to favoring a one-and-done hike. But the August report would have had to have done a lot more work to move the center of gravity from holding to a *hiking cycle*. (More on the August CPI report below.) Moreover, a one-and-done hike is unlikely due to Chairman Warsh’s approach to communications, which suggests that he would not be eager to explain why the Fed did its first one-and-done hike in decades. I very well might be wrong. It is worth noting that Governor Waller, who is very influential with other committee members, might have signaled support for a one-and-done hike when he said the following on September 3rd: “If there is evidence that progress toward two percent inflation reversed in August, a small adjustment in our stance would help ensure that it resumes.” 2. NOT ROCKING THE MARKET IS A REAL CONCERN Not rocking the market by holding is an argument that many analysts take seriously. If the Fed does hike, then the desire to avoid the market reaction that would follow from holding could be the decisive factor behind the hike. * But the bond market thinks there’s a 75 percent chance of two or more hikes in 2026. So a one-and-done hike would still go against the overwhelming consensus of the market, and a one-and-done hike would still find the Fed rocking the market by going against its pricing. * If Chairman Warsh is looking for an opportunity to signal to the market that the Warsh Fed is different than its recent predecessors, then this is that opportunity. 3. WAS THE AUGUST CPI REPORT THAT TROUBLING? * Based on the August CPI, I'm expecting August monthly core PCE inflation to have accelerated a bit relative to the June and July. But even so, I expect August monthly core PCE inflation to be around 3.1 percent annualized. I am expecting the August six-month change in core PCE to be around 3.2 percent annualized. I am guessing that the majority of the FOMC would view this as evidence of ongoing disinflation (3.1 < 3.2). Or, if not, I am guessing at least that the majority would not view it as evidence of reacceleration that requires a hiking cycle to begin this week. Instead, I suspect that they would prefer to see how the next few months of data unfold. * I suspect that the August CPI print did not change the view of the center of gravity of the committee that, without higher energy prices and tariffs, underlying inflation would be closer to 2.5 percent than to 3 percent. For example, the August CPI report did not show strong evidence of inflation creeping into core services (at least relative to July). In August, core services CPI printed at 3.0 percent over the year. In July, the same measure was 3.0 percent. So if in July you thought that the economy was experiencing some disinflation, and that above-target inflation was largely driven by supply shocks, then the August PCE report we are likely to get would likely not be enough to move you off that view. 4. FINANCIAL CONDITIONS ARE TIGHTENING Over the past couple weeks, financial conditions have tightened, which Chairman Warsh and others on the committee could argue is doing the work that a potential increase in the funds rate was meant to do. 5. TO BE CLEAR, I WOULD RAISE RATES To be clear, my core argument is that not enough has happened since the July FOMC meeting that views should move in either direction. In July, if you thought that the federal funds rate was too low, then you should still think the federal funds rate is too low. And in July, if you thought the federal funds rate was at the appropriate level, then you should still think it is at the appropriate level. My own view is that the federal funds rate is too low and that the Fed should increase the funds rate this week. I would have voted for a rate hike in July (and earlier; I was opposed to the cuts in 2025). The center of gravity of the FOMC has not agreed with that throughout 2026 — including as recently as July. I suspect the data that have come in since the July meeting have not changed their view. I am expecting the Fed to hold this week, though I would not be shocked if I turn out to be wrong.
26
32
13
143
35,409
Kevin, look. After you get sworn in I’m hitting Iran. Hard. Very hard. Oil goes right back to a $100. Maybe more. Beautiful. Everybody’s going to love it. Then I go on television every single day and I say “cut the rates, Kevin. Cut them. Cut them now.” I’m going to be on your ass. Publicly. Relentlessly. The fake news will go crazy. “Trump’s attacking his own Fed chair!” Perfect, I did the same thing to Jerry during my first term and he waited a year to cut rates. Meanwhile the whole market knows you have to hike. Inflation’s coming back. Everybody sees it. I see it. And I’m putting BESSY on Japan. Scott. Yen carry trade? We’re going to blow it up. Watch what happens when that trade unwinds. Ugly for a lot of people. Beautiful for us. Really, Really bad for stocks. The AI guys? I’m bringing them all in. Elon. Anthropic. The whole group. I sit them down and I say, “Fellas, we gotta crash stocks. All of you go out there and say you’re scared of your own models. Terrified. The models are too powerful. We don’t know what they’ll do.” They’ll all say the same thing. Coordinated. Looks organic. Market panics. Beautiful. Stocks drop 30%. Then the government steps in and takes a huge stake. Huge. We buy the dip with the country’s balance sheet. We own a piece of everything. Beautiful. All the panicans will sell to us and it will be gorgeous. (leans in) That was the plan the entire time. $TLT is down 50% from the highs. 50%! Nobody wants to talk about it. You hike right into rising inflation, Japan blows up the carry trade, the AI boys all scream “we’re scared of our AI" stocks crash 30%, government takes the stake, and you force a massive flight to safety into long bonds if you know what I mean. Money has nowhere else to go. Treasuries rip everyone’s face off. Everyone’s face off! Then we cut rates. It will be beautiful. Believe me. I’ve been thinking about this for a long time. We’re going to make the long bonds great again.
67
103
16
644
97,604
🚨 THE FED JUST FUNDED A $15.6 BILLION TREASURY BUYBACK WITH MORTGAGE BOND SECURITIES The Federal Reserve just quietly announced it will buy $15.6 BILLION of short-term Treasury bills over the next month. Why? Because mortgage bonds it already owns are paying down, and instead of shrinking its balance sheet, the Fed is rolling that cash straight back into T-bills. At the same time, they’re pausing the extra “reserve management” purchases until mid-October. Translation: they’re only doing the reinvestment part, not adding even more money on top. But it’s get very interesting on how they’re making it work: What the Fed Is Doing: The Fed bought $2.7 trillion in MBS during COVID to manipulate and suppress mortgage rates. Now, it’s refusing to sell those MBS. That keeps demand high and MBS yields (and mortgage rates) lower than they otherwise would be. But it would effectively raise mortgage rates eventually. When the Fed buys those short-term bills, cash hits the banking system. The Treasury can then use that extra demand to buy back longer-term 10- and 20-year notes. So the market sees: • More short-term paper getting snapped up • Longer-term debt getting retired • The Fed’s balance sheet staying fat instead of shrinking They call it “technical operations.”
Critics call it stealth QE with extra steps. Simply put… 
The Fed is still pumping money into the system, just using shorter-term bills so they can claim they’re not doing the classic “print money and buy long bonds” playbook. Watch the 10-year yield and mortgage rates. This kind of move rarely stays quiet for long.
ああ、もし現在の経済秩序の崩壊を、世界的な大危機と重なるまで遅らせることができたら、どれほど都合がいいことだろう。 AI、量子コンピューティング、エネルギー危機。どれでも好きなものを選べばいい。 我々の「同盟国」は、すでに完璧なスケープゴート探しに奔走している。:)
25
227
16
932
283,985
PolyBee retweeted
Peter Schiff
@PeterSchiffSep 11
Traders now believe if the Fed hikes rates next week, long-term bond yields will fall, as the hike will improve the Fed's inflation-fighting credibility. But the expected hike will be far too little to win the inflation fight, so long-term yields will rise regardless of a hike.
163
175
13
2,049
146,387
PolyBee retweeted
You have no excuse not to make trading work. You can only bullshit yourself for a certain period of time before you realize that nothing changes if nothing changes. Take action. I’m telling you exactly where to start. It won’t be easy, nothing worth achieving is. I never had this when I was learning. That’s why I made it… ⬇️
15
54
4
471
23,683
🚨 Treasury Secretary Dares Traders to Short Yen and Then Drops This Chilling Line: “I Am the House Now” Scott Bessent Just Triggered the Biggest GameStop Moment Ever. The Treasury Boss Just Lit the Fuse on a Trillion-Dollar Yen Squeeze. Scott Bessent just dropped a bombshell: He claims, “Secret, asymmetric intel on Japan’s next policy move and is openly taunting anyone betting against the yen.” When the guy running America’s finances says “I am the house now,” it means the game is rigged and retail traders, hedge funds, and crypto degens are the suckers at the table. The yen carry trade… the massive, leveraged bet that has pumped stocks, Bitcoin, and risk assets for years is hanging by a thread. If Bessent’s “insight” is real and Japan suddenly tightens or intervenes, the unwind could be violent: exploding USD/JPY volatility, forced liquidations, a rush for dollars, and cascading losses across equities and crypto. One wrong move and trillions in cheap yen-funded positions get crushed. This isn’t just forex drama. It’s a warning shot that Washington thinks it has the upper hand in the U.S.-Japan monetary chess game. Traders who fade the yen now risk getting steamrolled by policy they can’t see coming. The house always wins and Bessent just told you he’s dealing the cards.
日本銀行は身動きが取れず、 日本銀行は最悪のシナリオについて議論した。 ドルの暴落、あるいは基軸通貨としての地位の喪失は、世界恐慌をはるかに凌駕する事態を引き起こす可能性がある。 日本と米国は、現在の体制を何としても守ろうとするだろう。 これから新たな秩序が生まれるかもしれないが、その移行は苦痛を伴うものとなるだろう。
176
473
69
2,174
642,528
🚨 JAPAN JUST DECLARED WAR ON THE FREE-YEN ERA: “THE HOUSE IS ABOUT TO GET MARGIN-CALLED” The U.S. Treasury Secretary stood in Texas and delivered the most arrogant line a finance minister has uttered in a generation: “I have asymmetric information about Bank of Japan. I am the house now” and dared the traders to short the yen. A chilling warning just dropped from BoJ’s Yuto: “They say the house always wins. This time Japan is not just betting against the house. Japan is taking down the entire house. This time the entire system will receive a margin call.” Bessent claimed he knows what the Bank of Japan will do. He claimed he knows what Japanese policymakers will do. He dared traders to short the yen against him. Bessent says he has the inside track on Tokyo. Yuto just said Tokyo isn’t playing the same game. Interestingly, The BoJ and finance minister had threatened of bold actions to save the yen. Yuto had even apologized for the measures being prepared. Then Boom, the US Treasury intervened and effectively took control of BoJ operations to stop Japan hiking rates and dumping its $1.4T in Treasuries, which would collapse the entire US debt market and trigger a global liquidity crisis. One man claims he is the house. The other just said Japan is about to flatten the house. If both of them are even half right, the next few weeks are not a normal rate decision. They are the moment the world’s largest hidden carry trade meets two governments who think they control the outcome.
彼らは言う、ハウスはいつも勝つ。 今回、日本はただハウスに対して賭けるだけではない。 日本はハウス全体を倒す。 今回、システム全体がマージンコールを受ける。
95
488
41
2,075
248,947