Maybe it makes sense to rely more on reducing balance sheet vs. raising interest rates to remove liquidity. Raising interest rates increases all debt servicing costs including government and would also act to strengthen the dollar.
Have shorted via put options those stocks that are breaking their uptrends. This deep pullback could become a huge stockmarket crash if the Federal Reserve raises interest rates. The Build Back BS bill will be put out in some form by the Democrats. If it includes huge tax increases on US corporations, that should be more than enough to crash the stockmarket. That is not counting the massive inflation maybe, 10 times worst than what we have so far. The prices of all goods and services will rise. Corporate earnings will take huge hits. It would be a huge bloodbath when it happens. Retirement accounts will all be walloped for everyone.
A lot of things can still happen but, looks like the bad things outweigh the good things which is weighing on the stockmarket. Just my 2 cents.
TSX is in the sweet spot to outperform relative to US markets this year ( whatever that is ). I expect commodity areas will outperform any short strategy assuming roughly equal trading skills and effort. I missed a few easy buys lately because I ran my cash down so I think keeping some in reserve is a good plan redeployng when stocks get oversold.
Recently charting wise, 2 small breaks of the highs is a sell/hedge for me. Have very little of stock position and that is hedged by futures. Trading so much easier with well defined rules and knowing your stats of charting extremes.