PPI Confirms Hot Inflation

It comes as no surprise that PPI confirmed yesterday’s hot CPI print, coming in at a whopping 6.2%. We’ve been beating the inflation drum for so long, it feels a bit anticlimactic to acknowledge that it’s finally here and even slightly greater than we anticipated. As regular readers well know, I expected central bankers to … continue reading →

The Pandemic is Still With Us

ES is now off 9.3% from its recent top (-7.8% from our Correction Warning), nailing our 3253 target overnight.  The decline has broadened from the overpriced tech stocks to include banks, energy and cyclicals. The factors we’ve been watching for the past three weeks are all bearish now, and bulls are starting to acknowledge the … continue reading →

Core PPI Tops Estimates

Maybe the Fed had it right, leaving the door open to higher inflation. Though August headline PPI came in slightly higher than expected at 0.3% vs 0.2%, core PPI rose 0.4% versus 0.2% expected. S&P futures sold off 8 points on the news, but the algos had other ideas. As is often the case, “someone” … continue reading →

Pop and Drop?

There’s a lot to unpack this morning, as several targets were tagged overnight.   USDJPY finally popped up to tag its 200-DMA……which enabled ES to come within 1.43 of our 3076.93 target – the 2.618 Fib extension of the drop between 2007-2009. I thought this was going to happen over the weekend, but better late then … continue reading →

Goal-Line Stand

SUBSCRIBERS:  Just updated our forecast page, including RB, CL, DXY, USDJPY, EURUSD, SPX/ES, Gold, VIX, COMP, DJIA, AAPL and bonds.  Check it out HERE.  *  *  * Rumbling toward the end zone, the bears ran into the bulls’ best defender: VIX.  As ES tagged our channel-line target a day ahead of schedule (and, therefore at … continue reading →

Update on COMP: Dec 7, 2018

Don’t look now, but COMP is approaching our 6760 target.  As we discussed on Oct 10 [see: Plan B] COMP faced significant downside if its 200-DMA didn’t hold. Bottom line, it didn’t.  It was off as much as 13.3% last month before beginning a bounce that was destined to fail.  Next week, it will get … continue reading →