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…)
Record Inflation Numbers – Markets to Start Worrying, Yet? As we have been writing here for the last two weeks, “Valuations, inflation concerns, and delta-plus worries” might come back onto investors’ radars sooner or later, even though they seem to have faded into the background in the momentum-frenzy that is being driven by earnings and (more…)
Earnings and Government Spending Valuations, inflation concerns, and delta-plus worries seem to have faded into the background in the momentum-frenzy that is driven by earnings and govenment spending bills…at least for the moment. As a trader, your job is to exploit the momentum – not necessarily explain it! Never mind trying to rationalize the exuberance (more…)
Higher-than-expected NFP Print Confirms the Inflation as Transitory?! If you thought markets were really worried about the Fed being wrong about the transitory nature of the inflation, then this morning’s pre-market bullish run on the markets following the NFP data should definitely baffle you! And, you may not be alone. Nevertheless, valuations, inflation concerns, and (more…)
Fed Feeding Fodder to the Markets’ Irrational Exuberance! As we published in our morning trading plans yesterday: “IF it (the FOMC decision) does not sound ominous, markets appear ready for embarking on another leg up. Bears need to be cautious against jumping into potential bear-traps”. This played out as expected yesterday after the FOMC event, (more…)
FOMC Bringing Late Halloween or Early Thanksgiving Today? As we have been writing since last week, “Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy subsides”. The Fed’s tone today could be deciding to what extent these issues will drive the markets in the coming days. IF (more…)
Waiting for the Fed Event Tomorrow The underwhelming price action this morning is consistent with our models’ indication of no directional bias until the Fed’s meeting this Wednesday. As we have been writing for the last few days, “Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy (more…)
