Rising Yields, Inflation, Covid-in-Europe, and Powell After the initial pop following Powell’s re-appoiontment, markets started unwinding the recent gains in a listless fashion. This morning’s price action so far indicates to renewed uncertainty and unease in the markets with the various issues investors are trying to grapple with: Rising inflation, rising yields, Powell’s apparently (more…)
Biden Shows Confidence In Powell – Will Markets Show the Same? Biden showed confidence in Powell’s leadership at the Fed by reappointing him as the chair. It remains to be seen whether the markets show the same confidence or judge it as a bad decision. Whether the markets like the reappointment or hate it, it (more…)
Markets to Obsess over Fed Chair and European Covid Situation? The (new?) Fed Chair nomination over this weekend and the worsening Covid situation in Europe seems to be the current sources of market tension that is likely to unwind in a violent way in the next few days. Expect the 4715 level – on a (more…)
The Coiled Markets to Unwind Soon? Markets appear to be building up a lot of pentup tension that is likely to unwind in a violent way in the next few days. The upcoming Fed chair (re?)appointment could pave way to this. Expect the 4715 level on the S&P 500 to be the critical level to (more…)
Open Short Survived by 0.05 points! The short that was opened last Wednesday, 11/10, had a stop loss at 4715 and the S&P 500 index reached a session high of 4714.95 and left the short alive! Looks like our models nailed it by identifying this level days in advance…may be by fluke or may be (more…)
Searching for a Direction As we wrote in our Friday’s morning trading plans, “With the upside momentum appearing to start fading, and with inflation concerns not appearing to dent investors and corporates outlook, the markets could be meandering in a directionless manner for the near term”. This morning’s price action so far conforms to this (more…)
Meandering Markets As we wrote in our Friday’s morning trading plans, “With the upside momentum appearing to start fading, and with inflation concerns not appearing to dent investors and corporates outlook, the markets could be meandering in a directionless manner for the near term”. This morning’s price action so far conforms to that “Meandering Markets” (more…)
No Directional Drivers With the upside momentum appearing to start fading, and with inflation concerns not appearing to dent investors and corporates outlook, the markets could be meandering in a directionless manner for the near term. Positional Trading Models: Our Positional Trading Models went short on Wednesday, 11/10, on a break below 4672 (entry at (more…)
Upside Pressure is Easing For a change, markets seem to be searching for rationale to go up, leading to rapidly easing upside pressure. What follows next depends on what props the congress can try to put under the markets to further support it (more/new big government spending bills? Fed actively try to ease market fears (more…)
Another Record Inflation Number Out – “Transitory”? Another record inflation number in the CPI release this morning, as many expected. Markets seem to be trying to decide whether it should be considered as “transitory” or to begin worrying about inflation. As we have been writing here for the last two weeks, “Valuations, inflation concerns, and (more…)
