Equities sold off sharply yesterday following a reminder that inflation hasn’t yet gone away. Between the MoM PPI print (0.7% vs 0.4% exp., 0.5% vs 0.3% core) and Fed presidents’ commentary, rates and the USD continued to rally – putting equities on the defensive.

The trend continues this morning, with futures off as much as 36 points overnight despite it being Feb options expiration day.

Meanwhile, the financial press has finally caught on to the notion that $1 trillion in credit card debt amidst rising rates and delinquencies might not be good for the economy. Will markets care?

continued for members…

I know it’s a bit of a broken record, but we’re still looking for a backtest of the falling channel from Jan 2022 across the board. Anything below that would be a bonus for the bears.

Currencies are still on the same track as they have been, with the net effect of a strengthening dollar… …continuing to put pressure on GC and SI. The 10Y is on the brink of a breakout to new cycle highs that haven’t been seen since Nov 10.

more later…