What has transpired over the past ten trading days has been extraordinary (and rather tiresome). I can sum it up with a simple chart of half-hour bars:
There are two highlight “events” on this chart:
- In red, there is the huge FOMC reversal that took place at the last Fed meeting. I believed (quite incorrectly, it turns out) that Powell’s I-mean-what-I-say declaration would set the tone for the rest of the year and would put an end to the buying-of-equities insanity that has taken place since October 13th.
- In blue, there is last Thursday’s vomit-inducing oh-boy-inflation-is-only-7.7% mega-rally.
When viewed in this context, you can see how this morning’s PPI rally and Polish missiles plunge are absolutely meaningless wiggles. Stepping back to even a two week period shows that there were only two important events, and we’re still feeling the effects of the goddamned CPI “pivot any moment now” rally.
Oh, incidentally, I think Tyler is pissed off that I’m calling ZH a bullish site. I’ve been a daily visitor there for 13 years, and when I went there today………..
Cancel culture much?
