Republic Risk: Thursday Issue

Recession fears are "temporarily" on hold after today's jobless numbers. But something is lurking around the corner as we remain Red across the board.

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

It's going to take more than a two-day relief rally to calm the market's jitters. Major concerns about the Fed's path forward have come to light following last week's policy changes, which saw the Bank of Japan raise interest rates by 25 basis points.

Yes, volatility is falling, but there’s a lot of selling pressure. As usual, institutions use temporary pops to head for the exits in the final hour.

Trillions of dollars reversed course as yen shorts rushed to cover, causing a shift in the foundation of global credit markets. These liquidity events can take several days to work through the back offices of large banks and regulators before finally settling. When that's complete, you're once again flush with whatever you started with...In this case, Japanese Yen. 

This is a reset of the game. Think musical chairs. The music stopped for a moment. 

Now, we are resetting the seats and preparing to press play on the boombox. The…