Nero Fiddled As Rome Burned…

Good Morning:

• It would seem that World War III is well underway. I am now working on an opus of thoughts, but I will wait. Plus, I am looking for clay tablets to write it down for posterity.
• For now, the inflation report comes out in about 16 minutes. I am so excited if it comes out a few ticks above or below the consensus at 6.2%! You can generally double the number, as it is always understated by half. And this is the time of year they tweak the formula anyway, so I don’t find it easy to interpret.
• If I had to call the next few days, it would be a rally on the report today to suck the unwary into a top, and then the market will dump them all into early March. Yes, that is the bullish case. And there are too many shorts not to have the market run them into a panic rally after the number is released.
• Mercifully, another hour will pass before the NYSE Open.
• Anyway, I should not guess as I now have a cadre of algorithms to guide me. The algorithms have never been wrong. My “gut-feeling” calls generally come through half the time.
• We will see how it goes today, and I will drop you a line here later.
• As long as the 60-Year Cycle has an 80% or greater correlation (87% at this writing), I will continue to use it as our guide. It also shows a dip into early March, but not starting until next week.
• I am in the Trading Room for the first few hours today.

A.F. Thornton