PPI: Record Highs

Headline PPI reached record highs in February, coming in at 10.0% YoY. Under the hood, prices for unfinished goods registered 14.6%, the highest since January 2001. Prices for processed goods jumped 23.3%. Prices increased across the board, with the largest gains in energy. Futures were flat going into the early morning VIX plunge, but gained … continue reading →

Update on USDJPY: Mar 14, 2022

USDJPY reached our 118 target overnight. We charted this target over a year ago [see: USDJPY’s Turn] following USDJPY’s breakout from the falling purple channel [see: The Usual Suspects], reasoning that the Bank of Japan would ramp up the yen carry trade in order to support the Nikkei’s breakout. The BoJ rarely disappoints, and they … continue reading →

Bullard Speaks

In a CNBC interview this morning, Fed President Jim Bullard said “Our credibility is on the line here…”  Anyone paying any attention to the Fed knows that that ship sailed a long time ago. Futures have been all over the map, down as many as 55 points before VIX was hammered following a false news … continue reading →

Charts I’m Watching: Feb 11, 2022

This is all it took to get FOMC members to walk back Bullard’s hawkish comments. Note the tiny channel breakdown. Terrifying enough to keep QE going and to respond to the worst inflation in 40 years with a mere 25 bps rate hike a month from now? Apparently.How else can you explain this insanity? If … continue reading →

CPI Reaches New 40-Yr High

January headline CPI reached 7.5%, a new 40-yr high, sending the 10Y up over 2% for the first time since August 2019 when CPI registered 1.75%. As has been the trend since November, oil/gas no longer leads the way. Inflation has become widespread, higher than the Fed’s so-called 2% target in every category except, ironically, … continue reading →

Undone?

ES tagged our next downside target this morning……tagging the 4319 target we posted back on Jan 3 [see: De Facto Shutdown.] The only question now is whether stocks will get the big bounce they usually do after a 10% correction or whether they’ve come undone. In other words, I have this 1969 Guess Who classic … continue reading →

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 →