US equities open a little higher, which is somewhat impressive considering ‘yesterday’. The SPX prints a new hist’ high of 6560, as yesterday’s bull flag played out.
sp’60min
VIX’60min
Summary
Headline y/y: 2.9% vs 2.7% prior
Core y/y: 3.1% vs 3.1% prior
… not great, but hey… the Fed don’t care, as they’ve decided to bend the knee to King Trump.
Something to expect in the mid term… the Fed, and other central banks, raising their target for inflation from 2% to 3%. It will be one of the last warnings you’ll get before the next manufactured financial crisis.
As for equities… I’d expect little other than chop into the weekend, and into next Wed’ afternoon. We’ll probably print a new hist’ high… if marginal.
The cautious will NOT be short until (at least) the news of a rate cut.
I merely wonder whether we’ll sell off on Powell.
–
notable stock: ADBE
Adobe has earnings in AH. Those buying… are buying in m/t horror, with a s/t cyclical setup that doesn’t look great.
–
notable drone: RCAT
As the ‘black widow’ has been added to the NATO shopping catalogue.
The cautious will favour AVAV or KTOS
—
notable strength: CELH
Goldman, buy, $72.
I’ve never tried the drinks (probably not available here anyway).
The cautious will leave this well alone.
Far superior alt: PEP, or better still… the Dow component of KO
—
notable trans: UPS
BofA, neutral>underperform, 91>83.
I’d look for $75 in October, and that’d make for a good entry.