Seems like today is the day of the falling knife that Ata was talking about.
If today were a falling knife I would describe it as a butter knife - soft rounded no teeth.
In my mind, today is done ATR reached with no additional market moving reports
Tomorrow is a full day of talking heads from all the CB's - While I don't know about other CB the FED will tell you (if you listen) that they are going to hike rates until inflation is under control. Let me translate:
Inflation comes in many forms some transitory and others "sticky"
Supply side give transitory disruptions; think computer chips
Sticky inflation comes from 3 sources: WAGES, RENT, ENERGY
Wages increased 7.8% y/y
RENT increased by ????? (this shows up later but from what I have read it is likely to be 20% or more)
ENERGY - with OPEC+ cutting AND the USA strategic defense supply being drained and needing to be replaced AND with rig counts 25% below pandemic levels there is a very short supply so prices will increase.
For me tomorrow is consolidation and likely a drift higher (DXY lower) until Friday when the fireworks happen
...because you never know - until you do!
{image}
