This Isn’t A “Pullback,” This Is A Crash

The Fed has begun to accelerate its balance sheet shrinkage according to the schedule it set forth last September. Not surprisingly, the effects are beginning to be felt in the markets, just as I had warned. Only the timing was in question, but my technical work took care of that, and it got us heavily short by the time the slide began on January 29, reaching 90% short on February 3.