More Downside In Yields; So You Can Keep The Long Equity Trades Over Memorial Weekend, If You Wish

Original post:

 

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https://twitter.com/RobertPBalan1/status/1398352496783986689?s=20

 

.....1/X There should be more downside in yields. But issues are posed by a long Memorial weekend. Low in yields may be seen next week. The green circle is probably lowest we can expect today. I believe we should just take what will be offered and look at these trades again next week2/X This updates the lagged, modeled performance of the SPX vs main systemic liquidity flows. You see sharply higher SPX is what the models calls for, going into the week of June 2 to 7 (optimal, interpolated top thereafter is June 4). So you can keep the long trades if you wish.3/3 This also updates the lagged, modeled performance of the VIX vs main systemic liquidity flows. The models suggest sharply lower VIX going into week of June 2 to 7 (optimal, interpolated low thereafter is June 4), supporting the view of higher equities during the same period.