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Central Banks vs Equities

$S&P 500 Index (.SPX.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Apple (AAPL.US)$ $Tesla (TSLA.US)$ Will the Fed slow down interest rates? Given current political conditions, our AI finds this impossible. In times of war, countries divert resources into domestic production, which means that a strong national currency is necessary. Where will this money come from? In an already inflated economy, banks must resort to increased yields. Labor has to be strengthened and imports will decrease. There is no other way to hedge for potential war.
Given that most of us have to clue how to trade yields or commodities, there are a few of ways to lever these situations. One way is to short energy. Energy is one of institutional money's most successful plays. When institutional firms want to hedge their gains, they turn to money markets. Money markets offer extreme liquidity that is large enough for these firms and has the added benefit of flying under the radar to most traders. Data on these transactions is very difficult to achieve. I myself have tried to view the mythical order flow of these market whales and was promptly instructed to fuck off.
Money market clearings are non-anonymous and require copious amounts of paperwork which gives traders with real information plenty of time to position accordingly. When liquidation takes off, it will be violent and precise.
Why would any of this happen? Demand for oil is weakening and inflation is receding. This is a nice indicator for smart money to table gains and prepare for less growth in the coming years. We are currently calculating the ideal sectors for capitulation. Our computers will report on Monday.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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