Interim Alert – 10/7/2022

Good Morning:

• A stronger-than-expected September Employment Report has dashed the expectations of the Fed Pivot Crowd, almost ensuring another 0.75% rate increase at the next Fed meeting.
• So the next major report comes in a week, with September CPI (inflation).
• At this writing, the market is not taking the report well and is trading below the key five-day line.
• While the possibility of one more leg higher is still on the table, or something more complex with fits and starts, as we saw in late June, the market is on a foundation of shifting sands rather than the solid low bantered about in the media.
• Our swing accounts are either in cash or short for now per Monday’s sell signal, so stay tuned. Let’s see what happens in the regular session.
• If any changes to strategy are appropriate, the Founders’ Group will indicate as much.

Have a great weekend.

A.F. Thornton