It was a positive Tuesday in equity land, the SPX printing 4522, and settling +50pts (1.1%) to 4511. Meanwhile, WTIC settled -70cents (0.6%) to $109.27.
sp’weekly1b
WTIC daily
Summary
SPX: An impressive day for the bulls, breaking a new bounce high of 4522. Having cleared psy’4500, next major resistance is the Feb’ high of 4595, although I’d accept there is the 61% fib’ of 4549…
In terms of price AND time… this is about the most the bulls could expect.
WTIC: oil printed $113.35, but settled moderately lower in the $109s. There is an element of trading inverse to equities. Even if Russia/Ukraine can come to an agreement, oil is absolutely m/t bullish. The recent $130s should be cleared… on one excuse or another.
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Looking ahead
Wednesday will see New home sales, EIA Pet’
Earnings: WGO, GIS, TCEHY, KBH, FSM
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PF chart of the day
Computer has a very bullish target of $44.50.
Cleveland, monthly
The recent break above the $26s is decisive. S/t over-stretched, but broadly… its open air to 39/40, which isn’t bold, relative to the commodity blow off top, historic high of $100.34.
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Final note
*Special note to the new people…
I don’t expect you to agree with everything, or everyone I might highlight. In fact, what I hope for… is that you QUESTION EVERYTHING. If you can do that, you’ll be ahead of the curve!
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Another thought provoking piece from ‘Academy of Ideas’.
I was never a fan of Jung (or Freud), and its kinda unsettling when I realise some of my societal/species views are Jungian !
My fall back hope was always that technology would solve many of the problems. Yet tech could also be used to support a dystopian hell. We’ve certainly seen that as smartphones quickly became ‘access/VAX passes’. I wish I could be hopeful, but I’m really struggling to see a way out of the current trend.
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The Dore highlighting Zelensky, who is ironically using some of Putin’s tactics, in simply banning the opposition!
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The Schiff is annoying at times (not least with his dollar doom talk), but the issues raised are all important.
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The broken global supply chain…
Had an email this afternoon…
“However, we are arranging for a new replacement camera to be sent to you, as Nikon were unable to repair your camera as the replacement parts were unavailable”.
Nikon can’t source the parts, and are thus sending me a new $1000 camera. This is corporate madness, and whilst it will be nice to have a super zoom P950 again, its indicative of the broken global supply chain.
I’ve been droning on about this since spring 2020, as the C19 mandates fractured the system, and many of those breaks (or perhaps stress fractures) are still only in the process of being felt.
The fact we have a monstrous geo-political shift, with Russian saddling up with China, for what could be deemed ‘Commodity Wars’, should greatly unsettle the west.
You’ve probably seen some out there touting ‘ohh, the supply chain breaks are getting better’. No, they’re not. Even the Fed have accepted the shortages will continue into 2023.
Yours truly continues to maintain a policy of ‘buy what you need now, before shortages worsen, and/or prices rise any further’.
Goodnight from London