Is It Soup Yet?

Almost four months ago [see: Aug 24, 2020 Update] we noted that the next overhead resistance once ES broke above its Feb 3397.50 highs was the 1.272 Fib extension at 3730.37. Seeing ES pop above its former highs means there is no specific overhead Fib resistance until the 1.272 extension at 3730.29 (SPX 3720.37.) I … continue reading →

DXY’s Warning

DXY tagged our 89.88 target overnight, capping off a nice short that dates back to March 18 [see: Currencies to the Rescue.]With so many other instruments watching its every move, we’ll dig into whether the correction might have run its course and what it means for equities. continued for members… … continue reading →

Collateral Damage

Maybe Warren Buffett can get through to Congress. In a CNBC interview aired this morning: “It’s so important that small businesses, which have become collateral damage in a war that our country needed to fight, but we, in effect, voluntarily had an induced shut down of parts of the economy, and it hit many types … continue reading →

Don’t Ignore Inflation

Though CPI came in hot yesterday (0.2% versus 0.1% consensus) it scarcely merited a mention in the financial press. In my opinion, this is a mistake. Inflation drives interest rates which, given that debt has topped $27 trillion and 136% of GDP, remains an extremely important consideration. Though the official data is fundamentally flawed, inflation … continue reading →

Something Bigger?

And, everything was going so well… The algos managed to bounce just before tagging the line in the sand yesterday. So far, so good. But the overnight crew wasn’t so lucky, as ES finally dropped below a trend line dating back to Nov 6. Is this the “something bigger” we’ve been waiting for, or were … continue reading →