Everyone was on the edge of their seats for the Powell speech, and it turns out to be a complete nothing-burger, as is so often the case. He basically wanted to get across they are apolitical and are fighting inflation. Yep. 23,000 employees (I am serious) under the Federal Reserve to do just that. Anyway, as of now (pre-market) there is a modest sigh of relief going on, as the negative numbers on futures get smaller.
Looking a little longer-term, you can see the /ES’s six-hour journey into escape velocity, followed by re-entry of prices into the range we’ve been stuck within for nearly a month now. It could well be a pointless tug-of-war for all of today and tomorrow while we await the big event, which is Thursday morning’s CPI.
I’ve got a total of 27 positions (all of them long puts, with an average expiration over 110 days out) but am still keeping things medium-heavy since the CPI, understandably, strikes fear into the bearish heart.
