Our Analog: Then and Now

Futures have been all over the map this weekend following the breakdown of the small white flag pattern on Friday.  But, the key factor is that VIX is higher and should experience a golden cross as we approach PPI tomorrow and CPI on Thursday. Our downside targets remain unchanged with SPX now within a few … continue reading →

A Jobs Report That Matters

The thinking goes like this: a strong jobs report is bearish for stocks because it might delay the Fed’s eventual pivot; while, a weak report would be bullish because it might accelerate the Fed’s pivot. The futures are on the fence, but not for long. continued for members… … continue reading →

OPEC’s Party Was a Bust

OPEC+ threw the party they said they would. Everyone was talking about it. But, nobody came. CL and RB had already celebrated in the days leading up to the meeting and we were left with a non-event with CL stuck at a channel top and RB slamming into its 50-day MA.  Might there be an … continue reading →

VIX: Not a Coincidence

When COMP bounced at 10,572.33 on Friday, a mere 7.19 above its June 16 lows, it might have struck some as a coincidence.  It wasn’t. It was a well-coordinated effort to ensure that new lows were avoided – at least for the time being.The usual culprit: VIX.  For the 6th session in a row and … continue reading →

Fed Meeting on Deck

It’s unusual for stocks to sell off in the lead up to an FOMC meeting. Its also unusual for a bearish pattern such as a Head and Shoulders pattern to complete during those days.  Yet, here we are. As has been the case since late August, the only thing preventing a severe downturn (aside from … continue reading →

Pretty Soon, You’re Talking Real Money

Apparently, investors aren’t quite as sanguine about inflation as it seemed. After slightly overshooting our upside target from February, SPX plunged 4.32% – about $1.5 trillion in market cap. Trillion-and-a-half here, trillion-and-a-half there, pretty soon you’re talking real money.  It was the worst day in the markets since March 2020 and one of the worst … continue reading →

Inflation Rises

August CPI came in hot, rising 0.1% in August instead of the consensus 0.1% decline. Core was even worse: 0.6% versus 0.3% consensus. The annual print also disappointed, coming in at 8.3% versus expectations of 8.0% or less.Having slightly overshot our 4153 target overnight, ES is now reversing sharply.continued for  members… … continue reading →