Equities still Balanced with Low Vol
The equities markets remain balanced trading inside the PT1s pending the big news that could drop at any time on the fed’s emergency behind the closed doors meeting to assess the level and frequency of rate hikes the federal reserve board will issue in order to combat high inflation.
High Inflation by the way that the fed just sat there on their collective tuffs watching as it grew and grew and grew. Doing nothing except speeches that it was transitory.
Everyone is saying the inflation is caused by the stimulus that was released last year. More demand for the every day food and rent and energy and gas and clothes and appliances and audio/stereo/TVs/computers/phones that we consume. When we all know the high inflation is the direct result of the government shutting down access to all the aforesaid stuff we want and need to purchase. Open the factories, open the ports, and give us our stuff. The inflation will go away.
The other inflation that the federal reserve board is ignoring is the asset inflation of real estate. Why is it that no one except Blackrock can find a house? They are buying them all up. They and the multitude of other investors snapping up housing. This bubble needs to burst. Real property values need to come back in line to reality. Fast. Or no one will be able to afford or purchase a home again.
Ok off my soap box.
January brought the LARGEST EQUITY VOLUME INFLOWS in over a decade to the CME. Money flowed into the futures contracts and options of the $SPY and $SPX. The money is not going into Tech.
Friday a big chunk of that flow disappeared again. I believe the correction is still in play. So will be very interested to see the breaks of the Daily 1’s, long or short, and be in a position to take advantage of the directional price opportunities. I can measure the ranges and know precisely what to look for in any number of time frames. From the 1 Hour IB to the Globex to the Daily to the Weekly and Monthly. Measure twice, cut once.
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