Technical Bounce Into New Lows
Alright we just wanted to get a couple of charts out, here is the one we looked at early this am in the SP500:
We got close, 4250 and now we are trading 100 points higher! So expect continued support here from fast money. This is not value, just technical trade set ups. These are fast money levered types jumping in here as they have done for 2 decades on any real over selling pull back. So we suspect this may last awhile, and if Russia expands their initiative, well then all bets are off, but diplomacy may be in order here and with sanctions, well time will tell. Anyway here are the Nasdaq charts, first up futures:
Technically we like it, longer term, you know where we stand its still way over valued relative to the trajectory of rates. As far as QQQs
You can see the picture we are painting, weak shorts bailing all at once and bids evaporated has turned into fast money piling in for some short term profits. Longer term, well we still have a ways to go.
As far as Gold well last night we checked it out and we know this area is ripe for longer term resistance:
After the high around $1918 its back toward $1900 so 2011 highs held again and now we will see if they retest the channel.
Finally we end with this inflation graphic in energy from Statista. If you want to know why the FED is stuck, well one look at this chart and you’ll see they are fighting an uphill inflationary battle, which they are solely to blame, them and the rest of the global central banks. However we also want to play devils advocate here, Statista is cherry picking the Covid lows and although we know inflation is due to QE and more money begets higher prices, till the concentration in wealth becomes so vast, revolutions are had…anyway it is a nice graphic but we take it in context and we want our readers to know that you have to look at points in time when comparing things and we feel that Statista picked some timely lows for comparison, overall though we don’t argue their premise:
Till next time…
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