My inbox started to get peppered around noon when Larry Kudlow apparently started talking about the Prices Paid side of Tuesday’s ISM report. Heck, 2-days late and about $40/oz in the price of gold discounting stagflation later, we have to salute the man for noticing. CNBC calls that segment the “Call of The Wild.” I couldn’t make that up if I tried.
I used to have wild monkeys and sharks hanging out on these charts. Now is no time for that. The monkey chase to higher-highs is over, so is Squeezy The Shark’s chomping on the consensus Depressionista community. We’re nestling right back into a manageable trading range here.
I have a major immediate term TRADE line of resistance forming at 1005 (dotted red line in the chart below), and immediate term TRADE support down at 987.
After being bullish on employment in recent months, I have shifted to looking for a worse than expected unemployment report tomorrow. That, perversely, could end up being US Dollar bearish. What’s bad for the buck can be good for stocks. On the other hand, anything can happen when we’re dealing with a report that the manic media monkeys can swing from the chandeliers on.
I continue to take down my invested exposure.
Keith R. McCullough
Chief Executive Officer