Gold: Anatomy of a Rat’s Nest Chart

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 →

Powell Doesn’t Disappoint

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 Reckoning

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 →

Equities Plunge on Loss of Algo Support

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 →

Rinse and Repeat?

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 →

CPI: Sep 14, 2021

August CPI came in slightly below expectations, with the monthly headline figure at 0.3% versus last month’s 0.5% and the annual figure at 5.3% versus July’s 5.4%. To be clear, these are still problematic numbers and remain completely out of sync with artificially low interest rates. Only two categories in Schedule A came in at … continue reading →