Opex Day Fireworks -- It May Not Work The Way Pundits Expect; We Still See Lower Yields And Equities Next Week
SEPTEMBER 17, 2021
EUROPE OPEN BRIEF:
Our favorite bond yield model suggest yields will be lower until the week of September 27.
The same outlook provided by the TGA-centric bond yield model -- low point of September 27.
This is our translation of the yield moves with intraday highe frequency changes.
Falling yields and equities by early next week -- followed by a recovery with more decline forthcoming going to the month-end.
Corr Coef model shows intermediate trough on September 21/22, followed by equity recovery.
YM - At worst, a retest of the recent highs going into the OpEx, then lower into early next week.
ES - A possible retest of the recent highs going into the OpEx, then lower into early next week.
RTY - Not so much upside for RTY as yields continued higher
Note: We will provide further updates, as we approach OpEx -- but given the liquidity situation, we should still see lower lows NY closes next week.
And yes, we are massively short the equity market.
Good luck!!
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.