Negative Momentum... Revisited

How does it feel?

Dear Fellow Expat:

No introduction is necessary.

At 3 p.m. today, I’ll explain what’s happening with the Fed to Republic Risk members. In the meantime, I wrote you a song about what’s happening in the financial markets and what it means for momentum. You’ll recognize it…

It tells you everything you need to know about what’s happening in today's markets.

Once upon a time, the Fed had your back,
Cheap money flowed; there was no lack, didn’t it?
Every dip was bought, the bulls would run,
There's no need to hedge; the game was fun, admit it.

But now the winds of change have blown,
Powell cuts, but long yields have grown.

Debt’s exploding, the seeds are sown,
And China’s stuck in its deflation zone—
Now you’re all alone.

How does it feel?
How does it feel?
To trade on your own,
No market direction at all,
In a complete unknown... in an illiquid zone.