Republic Risk: Still Long SPY and Holding the 6,000 Call

Let's do this to ourselves all over again...

Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000

Dear Fellow Expat:

Markets start off well today as we kick off the Fed's three-day event in Jackson Hole. What should be a boring economics conference in the pristine mountains of Wyoming turns into must-see TV as investors wait for news that the Federal Reserve intends to cut rates at its next meeting. We'll get Powell's remarks tomorrow at 10 AM ET.

For now, our readings are a go… 

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Dear Fellow Expat:

Bloomberg reported this morning that the markets face a test because central banks around the globe are all engaging in Quantitative Tightening simultaneously.

And yet… the markets are moving higher.

What gives? Well, the Treasury Department's actions are to help boost the economy.

And then - there are the actions of Shadow Banks… which are the dominant driver of global liquidity that move risk assets. Michael Howell at CrossBorder Capital noted again on Tuesday that Global Liquidity is rising.

Shadow banks are …