11/13 Charts For The Week Ahead

Last week was an anomaly, it’s rare to see 10% moves on an index in such a short timeframe. The speed of the moves is just a sign of how erratic our markets are today. People are willing to buy/sell furiously on the silliest of headlines. Last week it was because inflation was only 7.7%. Do you know how long it will take the FED to get to their 2% target? I don’t even think they’ll get there ever, I think we eventually adjust our “target” upwards and begin to normalize 3.5-4% inflation once we get there. Short term I do think we see continuation just because the technicals are aligned for a run, but the risk/reward to the upside is quite limited now, let’s look at some charts so I can explain more.