NOBODY SEES THIS?
Let's get right to the point. Here is the chart of the S&P with a horizontal line connecting what is roughly the 4100 level since May: I can count on one hand the number of investors who are bullish down here. In other words, investors are, by and large, being played. Why? The markets are doing absolutely nothing, except throwing an exceptional temper tantrum that is causing investors to bend to the whims of whatever they are being told is true by what is basically the echo chamber of social media driven financial news and analysis. Post FOMC in early May we were basically at the same levels where we started this week. Following Powell's uber-hawkish middle finger to investors worldwide the S&P closed at basically the same levels where we started this week. And after Powell's uber-dovish loving embrace of investors, the S&P closed at 4080. A gigantic nothing burger of a market that has done nothing except increase sales of Xanax for an investor class that can't see the forest for the trees. It took just two days of persistent selling this week for investors to forget the markets are doing absolutely nothing down here, ignorantly coming up with price targets in the low 3000-high 2000 range for where the S&P will bottom sometime in Q1/Q2. This is a critical juncture. As with every critical juncture in the markets, there is an abundance of information that is nothing other than misinformation and noise that is nearly impossible to separate from facts. During times like this, the most basic of analysis, such as what I have presented above works. Markets have done nothing since May, while everyone has spiraled into a suicidal economic analysis depressive schizophrenia the likes of which I have rarely witnessed in more than 20 years trading. Upside remains extraordinary. Guard your eyes and ears. Zenolytics Turning Points is 300+ editions in and only getting better. Find out why institutions and individual investors have come to depend on our service through each and every type of market environment. Click here for details Disclaimer This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice. This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website. T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where...
The Inflation Trade Is Being Unwound Before Your Eyes
Some monumental moves in two major assets classes today while equities consolidated yesterday's gains. USD Index (DXY): A confirmation of the change of the trend taking place here with a close below the 200 day moving average. This is the first time in 18 months that the DXY has closed below its 200 day moving average, as the chart below demonstrates. And to further lob a flaming bag of fresh turds at the doorstep of every bear out there, yields were also pummeled today in poetic fashion: I highlighted the importance of the trend break for yields when it occurred during Thanksgiving week. What we have now are layers upon layers of confirmation that the inflation trade is disintegrating before our eyes. Not only will equities continue to respond to this by moving up towards 4500 on the SPX by year end, but Powell will also be responding by laying off the rate hikes past February, at the absolute latest. The game has changed. Make sure you're changing with it. Zenolytics Turning Points is 300+ editions in and only getting better. Find out why institutions and individual investors have come to depend on our service through each and every type of market environment. Click here for details Disclaimer This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice. This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website. T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness...