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Author: Michael Kramer

Trump as Shadow Fed Chair? Liquidity Tightens, Markets Defy Gravity—for Now

President Trump appears to have appointed himself the unofficial “Shadow Fed Chair,” pushing for much lower overnight rates. With liquidity conditions tightening and bond markets hinting at slowing growth, stock indices like the S&P 500 and NASDAQ are flashing overbought signals. This week’s economic data could reveal whether markets remain resilient or face renewed volatility.

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Market Complacency Nearing Extreme Levels

The S&P 500 rebounded on Friday following Thursday’s chaotic trading session. Friday’s rally appeared mostly mechanical, driven by volatility levels resetting after the jobs report. As volatility settled down, the cash market effectively stalled out. Oddly, many unusual dynamics are unfolding in the volatility space, particularly concerning correlations and the substantial gap between realized and …

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