Lesson 1

Introduction to High-Potency Connections

The 5-Basket Framework tracks metrics.

Lesson 2

Connection 1-2: Liquidity & Leverage

**Connection 1: Fed Net Liquidity (FED_NET_LIQUIDITY) → Risk Assets** Fed Net Liquidity (FED_NET_LIQUIDITY) = WALCL - TGA (WTREGEN) - RRP (RRPONTSYD) When Net Liquidity rises, risk assets tend to fol...

Lesson 3

Connection 3-4: Rates & Credit

**Connection 3: Real Yield (REAL_YIELD_2Y)s → Duration Assets** Real Yield (REAL_YIELD_2Y) = Nominal Yield - Inflation Expectations Real yields are the 'true cost' of mo...

Lesson 4

Connection 5-6: Dollar & Curve

**Connection 5: DXY → EM & Commodities** The dollar is the inverse of everything else.

Lesson 5

Connection 7-8: Carry & Credit Creation

**Connection 7: USD/JPY (USDJPY) → Carry/Correlation** The yen carry trade creates hidden liquidity.