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THE 4-YEAR CYCLE WILL NEVER ENDTHE 4-YEAR CYCLE WILL NEVER END. As I’ve said many times before, I now think this cycle will push into late January / February 2026, similar to 2017. As I’ve written extensively about, the macro setup is nearly identical to 2017. Read that here. The funny thing is, when we do push into early Q1 ‘26, all your favorite “influencers” will proclaim “this time is different”, because most weren’t here during the 2017 cycle or before. There is ZERO EVIDENCE that the 4-year cycle is dead. Since the GFC in 2008, the Fed was redesigned for these boom and bust cycles to counter inflation and unemployment. At this point, unless the US completely dismantles the Fed, the 4-year cycle will live on in perpetuity. We see the effect of this on TradFi as well. See the comparison here. The Fed is set to cut interest rates for the first time in a year at tomorrow’s FOMC. This is a liquidity positive catalyst for markets. The next ISM PMI print on October 1st should be ~50, which will be the start of the business cycle. That would give us ~5 months of a surging business cycle, which will pump risk assets to VALHALLA.
BITSTAMP:BTCUSDLong
by jonnieking
1
Yield Curve Inversion Watch Chart - Fed Has To Cut!If you’re worried about a recession, you should be watching the Yield Curve Inverting. Historically, an inversion signals a recession, but with a lag. We can see this on the chart whenever the yield curve hits 0% This shows the 2Y yield higher than the 10Y which is a signal that the market expects slow economic growth. To counter-act the inversion, the Fed cuts the EFFR, although they are always late. One would think that the Fed would learn from history, and get ahead of the curve this time around. Only time will tell. I’m cautiously optimistic as Treasury Secretary Bessent has stated that he has a weekly meeting with Fed Chair Powell.
FRED:T10Y2Y
by jonnieking
The Bear Party Hasn't Even Started YetEvery major crash in modern history came after rate hikes completed. Either during the plateau or during the first cuts. No bulls can explain how we're going to avoid that fate this time. We hiked twice as fast as 2007 and 2018 hikes, yet somehow there's gonna be a soft landing? Yeah right LOL It's already looking like a broadening wedge like 2000; and about to break the 13yr trendline for the first time since 2020. See inflation chart below: Worst case scenario(red), we get rapid deflation that causes a 6 month bull run at first, but ends with devastating crash. Like 2019, however we can't afford to write more stimulus checks. So there will be a depression, not a recession. No V recovery. Best we can hope for is more inflation(yellow); so the government can try and print it's way out of debt. Chop sideways roughly -50% +100% for a decade or more. Pipe dream is green, the Fed managing to thread the needle and get inflation between 0-3% for years to come. All while the U.S. Treasury manages to service it's interest payments, despite failing to close the gap between tax receipts and spending. This is not going to happen. It's physically impossible to produce 5M qualified workers overnight to fill the gap between job openings and job seekers. Layoffs won't help either. By then the recession is in full swing. Higher taxes coming as well. Growth is dead.
FRED:EFFRShort
by Nicklaus68
4
2022 Yearly Recap - SPY QQQ DIA IWM DXY US02Y EFFR USIRYY Looking back over the last year (22'), as the saying goes "hindsight is 20-20". That said, here's the recap on the 22' market cycle against the backdrop of the Federal Reserve Interest Rate Hiking Cycle (one of the fastest on record) — while at the same time, we (investors) are all asking "What's next for 23'?" TOP SECTION DXY - Dollar Index ($104.51) 🔼 ✅ (Green Line) US02Y - U.S. 2yr Treasury (4.38%) 🔼 ✅ (Black Line) US10Y - U.S. 10yr Treasury (3.84%) 🔼 ✅ (Blue Line) EFFR - Effective Federal Funds Rate (4.33%) 🔼 ✅ (Orange Line) USIRYY - U.S. YoY Inflation Rate, Federal Reserve Target Rate = 2% (7.10%) 🔼 ✅ (Baseline = 2%, Red = Above Target, Green = Below Target) BOTTOM SECTION SPY - S&P 500 SPX ES1! (YTD 22', -19.92%) 🔽 🩸 QQQ - Nasdaq NQ (YTD 22', -33.95%) 🔽 🩸 DIA - Dow Jones Industrial Average DJIA (YTD 22': -8.77%) 🔽 🩸 IWM - Russell 2000 RUT (YTD 22': -22.57%)🔽 🩸 Prediction(s) these asset classes for 23'? Let me know your macro trade(s) in the comments below! 👇🏼 All Asset Class Chart Template 📊👇🏼 www.tradingview.com Index Chart Template w/ YTD Return Indicator 📊👇🏼 www.tradingview.com
TVC:DXY
by kylemusserco