Final Pre-CPI Look
Tim Knight | Oct 13, 2022 03:14AM ET
I hate to say it, but today is a make-or-break day. At the risk of being simple-minded and dichotomous, I think today we either (a) begin a meaningful new counter-trend rally or, God willing, (b) have the kind of shock event which, at long last, sends the ES vaulting beneath support. If I had any sense, I’d be scared to pieces about today, but I’m oddly sanguine.
Below are three charts of key ETFs. I’ve got a few things to say about each one, which I’ve put in the caption area.
Here we have the worldwide stocks (sans North America) has has been a sensationally-clean top. What’s fascinating is that the progression lower has been steady, relentless, and almost perfectly cyclic. A new leg lower seems just around the corner.
I am very fond of my RY and BMO put positions, so it’s no surprise that Canada is teetering on the brink of a major tumble.
I remember that Robin Williams once said if alcohol is a crutch, then Jack Daniels is a wheelchair. I feel the same way about China, in the respect that as bad as worldwide equities have been, China has been absolutely horrendous. It is literally equaling the level it was at when George Bush was President. Fifteen years, and absolutely 0% returned.
In closing, I would like to remind you (and myself) not to read too much into the immediate reaction to the CPI. Last time it came out, the market shot higher for a short while, after which it came absolutely beaten to smithereens. Today could be one of the most trying periods in weeks, maybe even months, for all of us. Good luck to us, one and all.
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