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Unusual Whales Pod Ep 15: FOMC, 50bps, Powell, Inverted Yield and the Macro market heading into 2023

Unusual Whales

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The Second Derivative of Price Is a Big Problem

The markets in the very short term are massively overweighting the importance of the second derivative of price and I have a pin tweet right now saying kind of saying that okay telling the Fed to stop just because the second derivative is turning down is akin to saying that a traffic cop should give you a pass if you're going a hundred miles per hour but you've you've you know stopped accelerating. The asymmetric risk of under tightening is is a bigger deal here but the market's response seems to be awaiting the exact opposite there seems to be much more of an asymmetric response to any sort of opium on on a pivot.

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