As soon as the US Fed shifted into rate increases - traders should have suddenly elevated their protection tactics.
The Fed's objective is to beat inflation and remove the easy money mentality. In order to do that, they may have to break consumers, industry, global economics, and the general demand cycle for cars, homes, credit/debt, and more.
What happens when the Fed raises rates to a point where the global economy comes to a crashing halt? Consumers react by pausing or stalling travel/spending plans - creating demand destruction for Oil, Lumber, and other commodities.
In my opinion, it is just a matter of time before Crude Oil collapses downward, headed into a typical seasonal cycle (winter). I believe we may be entering a period of very dangerous demand destruction as the US Fed may have pushed rates too high (again).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.