So as rotten as it is that the market is exploding higher, in spite of a bear-friendly CPI, I would like to take a brief victory lap that my ceaselessly-cited 3500 target on the S&P was achieved. I would further like to note that the last time a major Fibonacci was hit (see yellow tint) the market rallied for over a week, stalled, and then rolled over. With nothing but 2023 puts at this point, I’m OK waiting.
I’m not sure what the bulls are smoking, to think this is a great time to buy, but maybe they’re convinced, once again, this is “peak inflation”. We’ll see. At this point, like I say, my puts are all next year, and I’ve got about 20% cash as dry powder.
