Such compensation is frequently that the recession is forced as the economy ends up in some wilderness. Such an environment is however transformed into a garden of Eden if the transition away from Protectionist Public Sector flows and Governments is opened. The following examples will make my meaning crystal clear:
After exploded 250% !!! via coronavirus triggering the immediate mistake occurred in which sent shockwaves across all main markets. The Fed capitulating is a major blow to Central Banking independence, because the Whitehouse mismanagement and fiscal policies are being funded in broad daylight by Powell. The crossroads between a higher stock market and a higher dollar was always going to trigger the next round of easing and .
Of course, Yields can be bought after the lows are set but that takes time. But buyers have no worries, since with a solid centre a loose Rates market is easy enough to defend. Even more than that, Fed's "Loose Gambit" will turn into a slow moving but safe instrument of attack on USD:
And now that we have to some extent defined the logic between the wilderness markets are walking into via the demand and supply shock vis a vis the measures referred to at the start of the segment.
For the technicals 🗺
Steel Support 0.72 <=> Strong Support 0.81 <=> Soft Support 0.85 <=> S/R FLIP <=> Soft Resistance 1.08 <=> Strong Resistance 1.17 <=> Steel Resistance 1.24
It is extremely important to track this chart and understand that markets challenging Central Banks, though it apparently only looks like a spiteful play, in fact represents a problem in the underlying structure of protectionism in the US.
Thanks as usual for keeping the likes and comments rolling!