Interim Update – 11/8/2022

Good Morning:

• Futures are down at this writing but still inside yesterday’s wide trading range. Overnight inventory is net short.
• Key levels remain similar to yesterday, but there appears to be more of a tilt to long put positions added yesterday. Support comes in at 3800, then 3780. Resistance is at 3836 and 3851.
• The Bitcoin crash and liquidity crisis drove yesterday’s wild and extreme moves.
• We took full advantage in the Founders Room, and I hardly had a chance to get off the mic for a break.
• I felt like I was calling out a horse race.
• As Bitcoin was the culprit, I was pondering the suggestion that Crypto is the new gold.
• The proposition reminded me of the Red Wave expected in the election last night.
• Crypto is hardly the new gold, and the Red Tsunami now looks more like a ripple.
• And, by the way, gold finally looks as if it is ready to make its move higher.
• And, it is a good time to remind everyone that the Navigator Algorithms are either cash (a short signal for more aggressive investors).
• We will keep an open mind, as always. Yesterday was a key reversal day on the annual calendar. Since we rallied into the day, it is reasonable to expect a decline after.
• And there is nothing like the CPI report on the table tomorrow to give us a catalyst. Of course, we never know what the CPI report will do – but the options market is pricing in a 2.5% move.
• And whether the Orwellians maintained most of their power due to cheating last night or because they are better at elections, it does not matter.
• As a side note, we always marveled at the 9/11 low-tech terrorist operation. 
• Yesterday’s Arizona elections sabotage appeared to be similar. When the Orwellians knew that most Patriots showed up on election day, what better way to suppress the vote than having 20% of the machines stop working in the reddest and most populated areas of Maricopa County in Phoenix?
• And, given that the Orwellian gubernatorial candidate was in charge of the elections – the rest is history.
• Nor would a Red Wave tsunami, now less than a ripple, have made any difference.
• And if you look at Florida and Ohio, where the States cleaned up their elections, and it is more difficult to cheat, you likely see a true barometer of where the country stands.
• The point is this; the die is cast, and the outlook for our nation and the global economy is ominous.
• The average person, and maybe even the above-average person, has no idea what is coming.
• You see, bad as things are, they will get much, much worse. Dystopian is the most polite word that comes to mind.
• You can already see the plugging of the proverbial dike. First, Credit Suisse. Whoops, another leak – Bitcoin. There will be another and another until the system finally blows.
• I hope I am wrong. I want to be wrong. But I also know I am right.
• As to the short-term, the Bitocin crash dashed the last gasp of bullish momentum yesterday morning.
• On a positive note, it was fun to take money from the “one-day wonder” Meme, DTE, and YOLO options crowd yesterday as they panicked to cover their shorts, giving us two trading extremes on the same day. We took full advantage.
• Tomorrow’s CPI report looms large – and it will likely be more of a wait-and-see chop day today.
• A 2.5% expected move is forecast for tomorrow. I will be in the Founders Room, and you should be too.

A.F. Thornton