Narrowing trades. Gloom on the horizon.

 

The S&P 500 is still holding above the Powell put of 3968, which was created, of course metaphorically on July 27th when Federal Reserve Chaman issued a decree that the U.S. Central Bank will offer no forward guidance, effectively causing an ambiguous sentiment between various Fed officials and the market, which is caught between priming its trades on anything that resembles a Fed "pivot" on rates (stopping rate hikes) or a reduction in rates i.e inflation is naturally topping out.  Further mispricing market expectations which falls firmly into the lap of Fed officials that have gone from jawboning market expectations to hawkish rhetoric and then back to dovish sentiment.  None of them are making much sense all.

The reality is inflation is still at a 40 year high and the Northern  Hemisphere energy crisis has already started, with a warmer start to winter.   Supply chain issues and energy reliant industries, such as the fertilizer industry, are showing conditions are tightening dramatically as they head into the colder months.   More concerning is the Ukraine situation, is that Putin could most definitely use a nuke.

Be aware.

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All market commentary to date:  https://chiasmusmagazine.blogspot.com/search/label/markets