The Market: Gold Says to BTFD

Discussion

No question the market looks bad here: VOL has blown out, CDX is finally starting to move, Iran is supposedly about to bomb Israel, and the Fed is officially starting to walk away from a soft landing attempt. But it’s mission critical to remember the other four puts in place: Yellen/Brainard, TGA/RRP liquidity, fiscal stimulus, and AI.

For everything that has occurred the last two days, SPY hasn’t even retraced -3%. Yes, more than the -2.45% marker I put in place in the last WOTE Report, but close enough for government work - Biden government especially.

I’ll deal with the structural and cyclical outlook repercussions of the March inflation report in future write-ups, but right here and now it’s time to BTFD in size.