1/X Given the sharp uptake in yields over the past two days, it's time to update the model which has anticipated this move very precisely. Per this liquidity change model, yields are now headed higher over the next two to three weeks. 2/X The liquidity models forecast a sharp 10yr yield uptake, with shallow pauses and should stop out during the period of June 2 to June 8, optimal top being June 6/7. Equities will be monkey-hammered by this sheer rise in yields so quickly, with NQ bearing the brunt (as usual). 3/X But it may not be a straight line process. I am still expecting a prior sharp fall in yields to test the lows. then a strong push higher. 4/4 So what happens to equities after yields peak? Will falling yields help equities? The covariance between yields and equities has been unpredictable. It could change from negative to positive (vice versa) quickly. I suspect if equities fall sharply, yields follow to downside.
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