Carlsquare weekly market letter: Pain trade coming up?

Read the weekly market letter here:

Carlsquare weekly market letter

• The gloomy macro picture, fears of inflation and higher interest rates continue to weigh on the market.
• US inflation figures will be released on Friday 27th October. This will be the last piece of data before the Fed meets on November 1st. The market is pricing in a dovish Fed, with the possibility of another rate hike in December. Will the Fed really be the one to kill the Christmas spirit this year?
• With a challenging macro environment, but possibly the last rally of the year in the making for technical reasons, the setup for the pain trade is here.
• The chart below is the Shanghai Composite Index (SSE).

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