It’s All About Finding Support

We can just call today’s theme SUPPORT… Because if what I’m about to show you doesn’t hold support, then the next few months could look a lot like the summer of 2008. There’s a simple way to visualize the overall direction and strength of our equity markets through the lens of just five price charts.…

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‘Tis the Season – Earnings Season

This week marks the kickoff to earnings season – that magical time of the year when a large number of public companies release their quarterly earnings reports. This season in particular is going to be a nail-biter as we’ll learn what the impact is of rising inflation, rising interest rates, and a strong dollar on…

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Inflation Has Not Peaked Yet

Consumer Price Index (CPI) data was released yesterday and it’s a doozy. In case you missed it… the CPI climbed to 9.1%. That’s a 41-year high. Not only is inflation at a four-decade high, but the momentum with which it has happened has the Fed scrambling for answers. The increase in consumer prices in June…

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We’re Seeing a Bid In Bonds

This will be interesting to any of you bond buyers out there…  After a historic meltdown in the first half of 2022, bonds (expressed via Treasuries) are catching a bid. We can debate all day long why Treasuries are seeing strong demand, but what isn’t up for debate is price… and it’s rising. Take a…

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Now Is Not the Time to Be Greedy

With a PhD in economics, “Dr. Copper” is widely followed as an important economic barometer.  Demand for Copper is known to foreshadow things to come.  And in an ominous sign, Copper is breaking down. One method to visualize this breakdown is through a simple Relative Strength comparison. Check out this chart comparing the Relative Strength…

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Proceed With Extreme Caution

Heavyweight boxer Mike Tyson was famous for saying, “Everyone has a plan until they get punched in the mouth.” My Question: Did Energy just get punched in the mouth? Because it sure looks that way. Until now, the Energy sector has been immune to the rout hitting the rest of the market.  Energy has been…

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Is a Bear Market Rally on the Horizon?

On Wednesday, the Federal Reserve raised its short-term interest rate by three-quarters of a percentage point. It’s the largest hike since 1994.  Federal Reserve Chair Jerome Powell and other board members seem determined to reach their 2% inflation target and are concerned about falling behind in their fight against inflation. Perhaps Captain Obvious needs to…

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The Rules Have Changed

Earlier in the week, I mentioned a very classic market pattern playing out in the equity indexes. I think it warrants a deeper review.  Why? Because 2022 is not 2020, or even 2021, or virtually any other year going back a decade…  Any investor still living under the illusion that we’re in the same investment…

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They Want You to Lose – I Want You to Win

It’s Chris here with a very important message… While it may appear that demand is finally in control at the moment… it’s almost guaranteed to be temporary.  It’s incredibly important that you don’t lose sight of the fact that it leads to the setup of the greatest, easiest, most obvious Bearish trades this summer.  People…

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