The Macro Brief: Fed Pause Is A Psychological Bull Trap

Where Macro Meet Markets

Traders around the world are trying to figure out when the Fed “pivots” by reversing its tightening money policy measures.

They’ve been lead to believe that if the Fed pivots (most are confusing pausing interest rate hikes as a pivot), then all is well and risk assets can sigh in relief.

Not, so! I went over this in “Put Skew Pops as Dealer Gamma Turns Po…