If you want to know why more and more Hedgefunds are throwing in the towel, just have a look at the chart below and look at it through the lense of previously reliable heuristics.
A) "Dr. Copper leads the Equity market"
Observation: still working fine!
Observation: still working fine!
B) "The Fixed Income market knows better then the Equity market"
Observation 1 (2yr TSY): Armageddon is coming
Observation 2 (TED SPREAD): Recovery is coming
Observation 2 (TED SPREAD): Recovery is coming
What's the right interpretation?
We don't know! The only thing we do know is that both the TED as well as the 2yr TSY are highly mananged by the 'politbuero' at the FED which doesn't help us here.....
I would follow Dr. Copper, who has not taken out the recent low like the S&P500 (non confirmation !!) and maybe the 2yr TSY given the bigger context...... but this is just my educated guess that can be completely wrong !!
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