Morning Notes – 8/9/2022

Good Morning:

• We remind subscribers that I will hold today’s Trading Room tomorrow due to scheduling conflicts.
• Today’s DEM shows increased volatility at 50 points plus or minus yesterday’s settlement. Today’s range will be 4090 to 4190. The WEM remains between 4060 and 4235.
• Be aware that the 5-Day line (our key, short-term bull/bear line) starts the day at 4135, and the market has traded below the key level overnight.
• The Algo painted exhaustion signals at yesterday’s close. So we remain in cash and neutral.
• At this writing, resistance today is at 4135, 4155, and 4180. Support is at 4120, 4105, and 4090.
• As price breaches a level, it reverses polarity.
• The question is how much further this FOMO rally takes us before the price rolls back again. How much it moves back lets us know whether the intermediate bear is over or will resume.
• It is difficult to believe that tomorrow’s CPI report will be as bad as the past few months. It is likely to be high, but the velocity should be slowing.
• There is nothing that prevents the market from moving higher and higher remains the so-called “pain” trade.
• The political landscape was rocked again last night with an FBI raid of President Trump’s home in Florida. As with many other recent events, the raid continues the rein of President Orwell’s “Ripley’s Believe it or Not” era.
• The cherry on top is World War III, which the Orwell Regime and Globalists seek for our Country and young people. What better way to distract from the abject failures of this administration and their Globalist partners? One can only hope that the first Russian or Chinese nukes hit Washington, D.C.
• But war can be good for profits and financial markets, or the Globalists wouldn’t seek it. Sick as it may be, the stock market could celebrate in the naivete that any such war won’t go nuclear.
• These are, indeed, strange times. But the negative sentiment continues to allow the market to climb the wall of worry until the bear reasserts itself, which is likely sooner rather than later.
• 4180 was my original target from June 17th, and we tagged that level yesterday. 4211 is still possible, and I think tomorrow’s report will dictate whether additional gains are possible.
• But the easy gains are now behind us.

 As always, stay tuned.

A.F. Thornton