Lesson 2
Setting Up Alerts
Alerts free you from constant monitoring while catching important moves. Set them based on the 8 Connections thresholds.
📊 Indicators mentioned in this lesson (click for details):
Good alerts notify you of regime-changing events without creating noise.
Alert Principles:
- Alert on thresholds, not price levels
- Alert on rate of change, not level
- Fewer alerts = more attention when triggered
- Have action plan for each alert
Recommended Alerts:
VIX:
- VIX > 25: Caution
- VIX > 30: Fear, potential opportunity
- VIX < 12: Complacency warning
MOVE:
- MOVE > 120: Leverage stress
- MOVE daily change > 15: Emergency
Credit Spreads:
- HY spread (BAMLH0A0HYM2) > 500 bps: Elevated fear
- HY spread (BAMLH0A0HYM2) change > 50 bps weekly: Stress emerging
USD/JPY (USDJPY):
- Weekly change > 3%: Carry unwind warning
DXY:
- Above 106: Strong dollar regime
- Below 100: Weak dollar regime
2s10s (T10Y2Y) Spread:
- Steepening after inversion: Recession signal
Tools:
- TradingView: Price alerts with notifications
- FRED: Email alerts on data releases
- Twitter: Real-time macro commentary
Check your understanding
Lesson Quiz
Completion unlocks quiz reviews.
Quiz Check
What's a good alert threshold for HY credit spread (BAMLH0A0HYM2)s?