CPI: Nov 13, 2019

Today is off to an interesting start.  Following Trump’s call for negative interest rates and more grandstanding on China in New York yesterday, headline CPI came in hotter than expected but right in line with our forecast. As we’ve discussed, this is the result of oil and gas trending sideways in support of the upcoming … continue reading →

Stocks on Track for More Losses

Things are playing out as expected, with ES coming within 5 points of our next downside target (the SMA200) overnight. The chart receiving the most attention is the 10Y, which broke below 22.94 and is on its way to our 21.72 target.The one which should be receiving the most attention is SPX, which closed below … continue reading →

A Broken Record

Though it is getting a little monotonous, I’ll never get tired of saying that we’re about to tag our next downside target. The past two weeks of downside have been a great recruiting tool for chart patterns and this website in particular. A note to prospective members…we’re currently offering auto-renew monthly subscriptions at half-off the … continue reading →

Time for Bulls to Get Nervous?

SPX needed about 22 points downside to reach the support of its SMA50, a rising channel bottom, and a falling channel bottom.  ES, which finally reached our 2655 target from last week [see FOMC: Endgame] is currently off 30 points. At this rate, SPX will breach its support on the open, especially if USDJPY doesn’t … continue reading →

Not Exactly Reassuring…

The markets weren’t exactly reassured by Powell’s testimony yesterday.  Bottom line, no one in their right mind buys the idea that we can have such strong GDP and wage growth but still need such accommodative policy. IMO, Powell was curt and sometimes downright evasive, which didn’t help matters. Stocks plunged to our initial downside target, … continue reading →