The Fed Checked Out of Inflation

18Jul3:35 pmEST

The Sun Sets on Slam Dunk Investing

Earlier today I was reminded by a Member who had nailed the weakness in Hershey, below on the quarterly chart, that the iconic confectioner in central Pennsylvania had defied the market melt-up and has been as weak as any name since early-May. Alongside KO MCD PEP, I would have to say HSY represents the QE/ZIRP liquidity bonanza insofar as...

17Jul2:58 pmEST

Don't Write Off This Civilization, Just Yet

Quite a bit of buzz again about the death of the Dollar of late, especially in light of the selloff in the greenback. And while I am quite bullish on commodities due to entrenched inflation for the rest of the decade, in the short-term I still think the Dollar has some unfinished business above. In particular, we spent some time this weekend...

16Jul9:56 amEST

Weekend Overview and Analysis 07/16/23 {Video}

The following video is a brief, condensed version of the full-length Weekend Video Strategy Session which I present each weekend to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. Please click here for more...

14Jul11:26 amEST

You Gotta Be the Outlaw Sometimes

Consider how deeply uncool, unpopular, mocked, hated-on, and overall vilified one would have to be to look for tops now. Bulls have argued that this is a new, one-way uptrend in an era of possible hyperinflation but a nonstop bull run nonetheless--I still reject any notion of imminent hyperinflation for the world's reserve currency (The...

13Jul3:28 pmEST

Only D.B. Cooper Can Turn This Market Now

Days like today make it feel like the market will rise at least 1% per day in perpetuity. After all, we have nonstop 0DTE options traders without a care in the world about SEC scrutiny, a Fed Chair who hems and haws even when he is supposedly hawkish, daily meme stocks like EDTX going bananas to the upside, and mega cap tech like META seemingly...

12Jul10:19 amEST

Celebrating What's Swept Under

Markets are still ebullient as I write this, with the softer CPI print this morning going as expected for the majority. The issue is that since the June CPI data, we have gasoline prices and oil going much higher, as seen respectively below on the daily charts for UGA and USO ETFs. Even though energy is only one part of the CPI, it is surely a...

11Jul12:16 pmEST

On Tigers, Bulls, and Bears

Well over a decade ago, the late, great, Julian Robertson gave an interview where he recalled being too early (i.e. wrong!) in shorting the Dot-Com Bubble in 1999/2000. Robertson had founded Tiger Management, one of the first hedge funds, in 1980, and is still considered to this day to be a Wall Street legend, mentoring tons of future stars. ...

10Jul11:49 amEST

A Consensus Emerges

It is only human nature that you see sentiment shift the way it has this year. After all, nothing truly bad seems to happen anymore. And even when it does, stocks either immediately shrug if off and lurch higher or, as was the case in March, The Fed and Treasury immediately blink and "backstop" the system with another batch of liquidity. Thus,...

09Jul9:46 amEST

Weekend Overview and Analysis 07/09/23 {Video}

The following video is a brief, condensed version of the full-length Weekend Video Strategy Session which I present each weekend to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. Please click here for more...

07Jul11:52 amEST

The Fed Checked Out of Inflation

But they can't ever leave. Despite a cooler jobs report this morning than the ADP data yesterday implied, fears of another Fed rate hike later this month remain very much in play. Small caps are trying to shrug that off by bouncing back from yesterday's selloff. However, I am looking for $186 (just above spot price) on the IWM ETF for the...