Is the Meltup Over?

We’ve waited a very long time for SPX’s 50-DMA to reach a great spot for a small pullback. It’s finally here. Will the market cooperate? NOTE: I will be out of the office between March 4-6, returning on March 7. continued for members… … continue reading →

PCE in Line

January headline PCE registered a 0.3% increase MoM (0.4% Core) which was in line with most estimates. YoY, headline PCE rose 2.4% versus 2.6% in December, while core PCE rose 2.8%, down from 2.9% in December. In other economic data, personal income rose to 1.0% MoM from 0.3% in December and personal spending rose at … continue reading →

Charts I’m Watching: Feb 27, 2024

Durable goods ex transportation fell by 0.3% in January, slightly more than expected. Futures rose slightly on the print, but are essentially flat ahead of the important consumer confidence reading. continued for members… … continue reading →

On the Brink

As we stated in yesterday’s update… …the downside case would be damaged considerably if NVDA were to come out with stellar earnings and outlook that boosted ES back into the rising yellow channel. NVDA’s stellar earnings and outlook did, in fact, boost NVDA back into its previously broken channel. The resulting algo spasm, however, boosted … continue reading →

All Good Things…

All good things must come to an end, or so the saying goes. For NVDA, it’s clear that the stock’s rally since the end of 2023 was following a very steep and narrow acceleration channel. These sorts of patterns feed upon themselves. As long as no one upsets the apple cart, there are outsized profits … continue reading →

Stagflation Fears Renewed

January PPI came in much hotter than expected while housing starts and permits fell far short of consensus, stoking persistent fears of stagflation.  PPI came in at 0.3% MoM versus 0.1% expected.  Excluding food and energy, core PPI rose 0.5% versus 0.1% expected. Stripping out trade services, the tally rose to 0.6%, its highest print … continue reading →

Retail Sales Warn of Economic Woes

Retail sales plunged 0.8% in January, far below estimates of -0.2% and last month’s +0.4%. The miss can’t be attributed solely to seasonality, as the Jan 2023 print was a massive +3.7% gain. The annual gain from Jan 2024 was a meager 0.6%. It has been a tough week for economic data. Inflation higher than … continue reading →