Housing Starts’ Huge Miss

Housing starts collapsed 12.3% in June, the 4th worst report in the last 5 years.  Permits dropped 2.2%. Futures barely budged on the news……as the 4% GDP growth narrative continues to dominate the headlines (Kudlow takes the mic at Delivering Alpha) and algos continue to be well-supported by favorable currency moves……and, conveniently timed dips in … continue reading →

Netflix: Watch It

A quick glance at NFLX’s daily chart shows it has significant additional downside potential. The most obvious downside target is the 100-DMA at 338.73.  But, the 200-DMA is approaching the white channel midline and should cross it at around 298-300 on or about August 6.  It makes for a nice downside target if the SMA100 … continue reading →

CPI Day: Jul 12, 2018

We’ve been beating the inflation drum for months, wondering when the folks behind the curtain would finally pull the levers to reign in energy prices.  Yesterday was a good start, as gasoline and WTI futures were both off sharply. Ordinarily, we’d expect to see stocks suffer in tandem.  But, as we discussed yesterday morning: So … continue reading →