A Nice Green Day for Most

With softening inflation reported at the consumer level this morning preferred stocks and baby bonds reacted positively with gains of around 2/3rds percent today–there was a sprinkling of red but it was minimal.

At a minimum todays CPI report MAY soften the Fed’s drive to raise interest rates–but on the other hand there is plenty of time before the next FOMC meeting (September 20-21) for much more data to be reported. Remember we just had a stellar employment report and both employment and inflation will again be reported before this meeting. If the next reports show economic softening I think we will see a 50 basis point hike in September–if not 75 basis points. We’ll just have to wait and see.

I deployed another 2% of my dry powder this week which gets me to the 17% area–on the way to 10%. My purchases have been in the usual suspects I have previously outlined.

My accounts are off in the 1-2% area for the year and I am quite satisfied with that performance all considered. From my reading of comments most folks are off just a bit with some that do more ‘flipping’ a bit better.

2 thoughts on “A Nice Green Day for Most”

  1. For me it’s been brutal. Off 5-8% is about average.

    On a positive note about equities, some of the chart readers have been saying the rally is hitting important points . Over 4100 on volume a big plus. I think the Fibonacci retracement is 4220 area. If it goes above that bears need to take notice!!

    1. It’s actually 4228 SPX. The 50% retrace of correction. Going back to the 1930’s every time you got a weekly close above the 50% retrace the bottom was never broken – 20 for 20. I learned that a long time ago from Larry Williams, a great trader. No guarantees though with an aggressive fed and this could be the first time the lows are broken.

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