Hi YXI friends,

The market is very anxious that the Fed may actually skip a rate cut in December, which has recently killed high-beta stocks and crypto.

There is limited visibility into the economic data, so, technically, the Fed is flying blind. But one could argue that if the Fed had previously admitted that current liquidity conditions are tight and rates are above neutral, the default option should be to cut steadily into the neutral rate.

My read is that the doom-and-gloom should not last long. With the government reopening, more liquidity is flowing back into the market and economy. I like the current conditions for buying opportunities in specific names, although some assets may have topped or are near their cycle tops.

Today’s article highlights the longer-term trajectories using the weekly charts, something I aim to do every Monday.

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