COMP Signals More Pain Ahead

A little over a week ago, COMP made a hard bounce off its 200-DMA, gapping much higher the following day. Yesterday, it plunged below its 200-DMA and closed there – not a good sign for the bulls. continued for members… … continue reading →

The 10Y’s Warning

10Y yields briefly poked above the Mar 2021 highs, adding to the drama surrounding next week’s CPI report. Meanwhile, December NFP came in at +199K, less than half consensus, while the unemployment rate dipped to 3.9% and wages continued to strengthen.  Remember, this was all pre-omicron. Futures were not amused. While ES held its 50-DMA … continue reading →

No More Free Lunch

The Fed’s experiment of pouring trillions of dollars into the markets is coming to an inglorious end. Even though an accelerated taper will still results in hundreds of billions in additional liquidity over the next several months, the writing is on the wall. Allianz Chief Economic Advisor Mohamed El-Erian said it well yesterday on CBS’ … continue reading →

Inflation Highest in Nearly 40 Years

At 6.81%, headline inflation is now the highest it has been since March 1982 (6.78%.)  Originally driven by sharply rising oil and gas prices… …it is now broad-based and anything but transitory, with medical commodities the only category below the Fed’s original 2% target. Algos responded with the usual VIX smackdown which, not surprisingly, began … continue reading →