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 →

Because They Can Can Can

Watching the “market” melt up and bonds barely budge in the face of all-time highs in the monthly and annual PPI print…  More grist for the Fed’s “transitory” inflation scenario. Inflation is no longer dominated solely by soaring oil/gas prices.  In other words, not transitory.Will the party end? Not as long as the Fed can … continue reading →

Charts I’m Watching: Aug 20, 2021

COVID deaths continue to mount and the return to work pushes further into the future, a negative backdrop for equities at a time when they’re losing momentum from the reflation factors. Futures are off mildly after bouncing off their overnight lows. continued for members… … continue reading →

Momentum: It Goes Both Ways

The correction is gathering steam, with ES off 40 points earlier this morning before getting a bounce. From a technical standpoint the culprit is VIX, which broke out of the falling channel which has guided stocks higher since March 2020. Our downside targets remain unchanged. continued for members… … continue reading →

Inflation: Still Here

Annual CPI remained at 5.4%, the highest in 30 years. And, that alarming number masks plenty of data which the BLS methodology simply ignores. Shelter, for instance, registered a 2.8% YoY increase per BLS’ survey-based calculation. Yet observed apartment rents increased at 9.2% in just the first six months of 2021. And, housing prices have … continue reading →

Update on Gold and Silver: Aug 9, 2021

The Fed detests gold and silver because, like higher interest rates, they are a stark reminder of the soaring inflation the Fed hopes we’ll ignore.  Interest rates can be manipulated lower by buying up every bond in sight. The Fed has been doing this to the tune of $120 billion per month. Gold and silver, … continue reading →

Time to Sell Your Home?

I’ve recently discussed this very issue with several friends who are a little nervous about the sharp runup in prices…and very nervous about the prospect of a selloff. Most of us remember how ugly things got during the Great Financial Crisis: the sharp rise and the much sharper plunge when the bubble burst.  According to … continue reading →