DC Lite #31

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights. Upgrade to get all 30 charts.

1. Lending standards vs. credit spreads. "Over time, tighter standards as measured by the Federal Reserve’s quarterly survey of senior lending officers have strongly correlated with rising credit spreads. That hasn’t happened in 2023."

2. HFs vs. oil. "Hedge funds slashed bullish bets on crude to a record low."

3. EM Fx breadth. "95% of emerging market currencies are above their 50-day average... this is bearish news for the $DXY."

See: Grant H.

4. DXY vs. SPX. The inverse correlation between the dollar and stocks is at its deepest since May.

5. Sectors vs. first cut. This chart shows sector outperformance hit rates before and after the first Fed rate cut.

Thanks for reading!