Week Ahead Strategy: The next move
Positioning is not ready for what's next
We have some events this week that will be important for running trades.
First, we don’t have any major economic data prints this week. I will be watching initial claims as usual though:
Second, I already provided a breakdown of how to think about the dot plot and Powell’s comments:
The dot plot says one thing but FED fund futures are only pricing in 1 rate hike. Powell's speech this week will be key for this discontinuity.
Third, we have the BoE meeting. I will say this over and over, nothing trades in a silo! Remember that the same people trading US bonds are trading Gilts. This means if there is some major move, it is likely to reverberate across global markets.
Let’s dig into these a little deeper and connect them to specific levels in the S&P500 and Bonds.
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