Taper Tantrum Revisited

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The Fed minutes dropped...and with it: sentiment, the Nasdaq and any stock that doesn't make money. Yes the party is finally, truly, and they really mean it this time...at an end. Rate hikes and tapering will come faster than expected. 

On the news treasury yields shot past a significant level of resistance (~1.70% on the 10 year). This triggered a blast higher for real world sectors like Energy, and immiseration lower for ARKK and other growth names (e.g. SNAP). Why? 

Because the liquidity bonanza of this late pandemic is reaching its final chapter. And so the erstwhile darlings of the future economy that don't really make money will probably find more pain in 2022 as the Fed pulls back on the reins. 

Sad to say, but we finally capitulate on ARKG and LABU to rotate more into the old man sector of the day...Oil and Gas (XLE). There may come a time to come back to genomics, but that time is not now. 

Meanwhile, what will become of Crypto as it tests support? Will the risk-off trade send Crypto into the sea in 2022? Or will the march to ETH 2.0 in the first half trigger a move higher? Or will it simply chop along sideways? No one seems to know.