We get yet another signal this morning that the Fed’s inflation generating activities have spun out of control. Despite the record setting pace of home price increases… …they’re still pumping $120 billion per month into markets. Madness. And, the algos which have made the whole operation hum are greedily eyeing a continuing spike in oil … continue reading →
Futures are off 40 points from the overnight highs as we cruise into the last week of the quarter. Advanced Durable Goods for August surprised, posting a 1.8% increase vs 0.7% expected on strong growth in shipments and transportation in particular. Bottom line, nothing here to support a continuation of massive liquidity injections. continued for … continue reading →
Once in a while, charts are so crystal clear that we can see the future as easily as we can reflect on the past. Gold is not one of those charts. The zigs and zags come fast and furious and rarely correlate with anything happening in the real world. Witness the indifference this so-called inflation … continue reading →
Futures nailed our 4424 target overnight. Most will attribute it to Powell’s (completely unsurprising) resolve to support the economy the stock market. But, we know that the algos were spurred into action by VIX’s drop back into the falling channel from Mar 2020 and its dip below its 200-DMA. Remember, it ain’t over till it’s … continue reading →
The Fed saw the current wave of inflation coming. After all, they created it, fed it, and cheered it on as it enriched investors while threatening the finances of everyone else. Those few who questioned their actions were assuaged with economics doublespeak, assured that this new inflation policy was more logical, that inflation was transitory, … continue reading →
ES nailed our next downside target yesterday, bouncing exactly where it needed to in order to avoid a panic.But, there’s more to this downturn than meets the eye. And, it changes everything. continued for members… … continue reading →
Futures reached our next downside target earlier this morning, the Fibonacci retracement at 4348 we added on Sep 9 [see: Just Don’t Call it a Taper.] ES is now off 4.6% since recent highs and 4% since our Correction Watch on Sep 8. The algo factors, which have propped up stocks for months, are positioned … continue reading →
Welcome to another day of churn, with breakdowns averted and breakouts merely head fakes (at least so far) as we continue to play cat and mouse with the 50-DMA. continued for members… … continue reading →
As we wait to see if the latest tag of the SMA50 results in yet another bounce (8th in a row) to new highs……or is just another head fake, with lower prices to come……we turn our attention to currencies, gold and silver – which are all at inflection points. Gold, for instance, is threatening to … continue reading →
ES tagged our 50-DMA target late yesterday. It was one of the least surprising outcomes one could imagine. In fact, SPX and ES have tagged or come close tagging their SMA50 (the purple line below) eight times over the past eight months. Central banks have practically guaranteed this outcome ever since they enabled the market … continue reading →