It’s comic to me that considering:
- The nation is helplessly drowning in a $32 trillion debt that will only grow trillions every year into infinity;
- The buying power of everyday people is shrinking on an everyday basis;
- Society’s fabric is being torn asunder;
- The proxy war in Ukraine gets worse by the day;
- The economy is heading straight into a cataclysmic recession
……..that the top concern everyone is breathlessly waiting for news on is whether the CPI is 5.0% or 4.9%. I mean, who give’s a rat’s ass? It’s like getting terminal cancer and being focused on a paper cut.
Anyway.
We awake to a red morning, which is always welcome, and an /ES threatening to break below this modest top.
On a larger scale, we can see how last week’s peek above the major resistance has been beaten back, and the prospect path to 3800 is the clearest and most logical direction. Depending, of course, on the aforementioned paper cut.
Crude oil also has had an insane recent period, with a flash-crash to $63 last week followed by an inexplicable rally. It seems to be petering out, however, in yet another lower high.
Getting away from all these intraday charts, I will simply say that the EFA (shown here, over years, with daily bars) tells the story. We have had a mega-rally from the October 13th Rolo Low up to the underbelly of the broken trendline.
This “Face-Off” I’ve mentioned ad nauseum across all the asset classes is bound to resolve before this month is over. I am positioned for it to resolve to the downside, but with a conservative 30.3% cash, which I shall not deploy until and paper cut data is clear and the presence of lemon juice is considered.
