Mark

Copper is trading at present below its Neutral Zone for today; the balance of the BEGOS Markets are within same, and volatility is light ahead of the FOMC’s Policy Statement (19:00 GMT). By Market Values, the Bond, Euro and Oil are in sync with their smooth valuation lines, Gold shows as 62 points “high” and the Spoo as 95 points “high”. The S&P itself is now 13 consecutive trading days “textbook overbought” and the fut’s-adj’d “live” P/E is 40.3x. By its Market Profile, the Spoo’s most dominantly traded price across the past ten trading sessions is 4033. For Market Rhythm consistency, on a 10-test swing basis the best of late remains the Spoo’s daily Moneyflow study and on a 24-test swing basis ’tis Gold’s daily Parabolics. The Econ Baro awaits January’s ADP Employment data and the ISM(Mfg) Index, plus December’s Construction Spending.

The Euro and all the components of the metals triumvirate are at present below their Neutral Zones for today; none of the other BEGOS Markets are above same, and volatility is light-to-moderate. The S&P 500, even having dropped -1.3% yesterday, remains “textbook overbought” now through the past 12 trading days; and by the MoneyFlow page, all three measures have returned to positive differentials, indicative that the recent S&P 500 was substantive; however with the “live” P/E at 38.6x, lack of supportive earnings remains the downside key. As anticipated per the current edition of The Gold Update, the yellow metal’s price is starting to come off. Moreover at Market Trends, the “Baby Blues” are falling (inclusive of real-time) for all eight BEGOS components. Today’s Econ Baro looks to January’s Chicago PMI and Consumer Confidence, plus Q4’s Employment Cost Index.

The Bond, Copper and the Spoo all are at present below their Neutral Zones for today; the balance of the BEGOS Markets are within same, and volatility is moderate. The Gold Update suggests price may run out of puff near-term; too, trading volume rolled from the February contract into that for April, with +16 points of premium. Both the Bond and Copper confirmed parabolic Short signals on their respective daily studies as of today’s open. By Market Trends, the Bond, Gold and Copper all see their “Baby Blues” of trend consistency rolling over following the firm recent rallies in these components. The Econ Baro is quiet today ahead of 15 incoming metrics as the week unfolds.

We were a bit surprised to see the first read on Q4 GDP come in as well as it did at +2.9%, albeit a slower pace than that finalized for Q3’s +3.2%; the Econ Baro’s decidedly negative tilt suggested the number would be notably weaker; we’ll see how the two revisions play out. At present, the Bond and Silver both are below their respective Neutral Zones for today; none of the other BEGOS Markets are above same, and volatility is yet again mostly light. The “live” futs-adj’d P/E of the S&P is 40.1x with the Index now “textbook overbought” for 10 consecutive trading days. Oil’s trade has narrowed since the 12-hr. MACD turned negative, however price has (yet) to let go to the downside; too by Market Values, price continues to hover above its smooth valuation line. Amongst today’s incoming metrics for the Baro are December’s Pending Home Sales, Personal Income/Spending, and the Fed’s favoured inflation gauge of Core PCE Prices.

The Spoo is the sole BEGOS Market at present above its Neutral Zone for today, all the other components are within same, and volatility is again mostly light. Today brings the first read of Q4’s GDP: the consensus expects a lower read than for Q3’s +3.2%, and the Econ Baro not only agrees, but suggests the +2.6% expectation may be too robust; (indeed we wouldn’t be entirely surprised by a negative read). The S&P 500 has been “textbook overbought” for nine consecutive trading days: the fut’s-adj’d “live” P/E is 39.2x. OIl has yet to respond to its negative 12-hr. MACD cross; mind too Oil’s price versus its smooth valuation line (see Market Values). Other metrics included for the Baro today are December’s Durable Orders and New Home Sales.

Both Gold and the Spoo are at present below today’s Neutral Zones; the balance of the BEGOS Markets are within same, and volatility is mostly light. At Market Values, Oil is curling down towards its smooth valuation line; too, Oil’s 12-hr. MACD (its best Market Rhythm at present) is crossing to negative. By Market Trends, Silver is the only component in negative regression. For swing consistency, topping the list (on a 10-test basis) is the Swiss Franc’s 30-mn. Moneyflow study, whilst (on a 24-test basis) the leader (whilst not an official BEGOS component) is the Yen’s 2-hr. MACD. The Econ Baro remains quiet today ahead of 10 incoming metrics over the next two days.

Gold is the sole BEGOS Market at present not inside, (indeed above), its Neutral Zone for today; session volatility is light. As much as we champion Gold’s rise (from 1618 on 03 November to its present 1941 level), we remain wary of price’s deviation above its smooth valuation line (see Market Values) which in real-time is 105 points; regardless, Gold’s cac volume is improved over that of the prior two months, evidence that the yellow metal is “getting the bid.” Money too has been flowing by our near-term measure (see S&P MoneyFlow) into the S&P 500 even as its “live” P/E is a fut’s-adj’d 39.5x; however the Spoo by Market Values is only some 55 points high; still, the S&P itself has been “textbook overbought” for the past seven trading days; the Spoo (at present 4034) by Market Profiles finds its most dominantly traded price across the past fortnight as 4013.

The week begins with Gold the only weak link, price at present below its Neutral Zone for today; all of the other BEGOS Markets are within same, and volatility is light-to-moderate. The Gold Update points to price having been steady as the Econ Baro has suffered a plunge, and reiterates the 1800s having morphed (we anticipate) from resistance into support; by Market Values in (real-time), Gold is 92 points above its smooth valuation line which suggests some stalling or near-term downside; but on balance, Gold’s present picture is quite durable. For the S&P 500, its “live” P/E is (futs-adj’d) 39.3x and the yield is 1.662% (vs. the 4.538% annualized yield on the 3-month T-Bill). For the Econ Baro today we’ve December’s Leading (i.e. “lagging”) Indicators.

The Euro and Silver are at present above their respective Neutral Zones for today; the balance of the BEGOS Markets are within same, and volatility is light. The S&P 500’s monetary outflow specific to the past two negative days has been sufficiently without thrust that per the MoneyFlow page’s weekly read such that the differential is rising; however by the broad quarterly measure, the S&P appears as 400 points “high”. Even as the S&P has come some 100 points off the year’s high, the P/E is not materially coming off (the futs-adj’d “live” read now 37.4x) as only 52% of constituents having reported bettered their bottom lines from a year ago. Whilst the Spoo is pointing to a higher S&P opening today, both the Market Value and Market Magnet for the Spoo have confirmed negative crossovers, suggesting still lower levels in the near-term balance. The Econ Bare completes its week with December’s Existing Home Sales.

Yesterday the Econ Baro tied for its worst single-day drop in its 25-year history, the data marked (at least for the present) by deflationary shrinkage. Today at the moment, we’ve both the Bond and Gold above their Neutral Zones, whilst below same is Copper; volatility is mostly light. One wonders if (similar to last year ’round this time) the S&P has printed its high (4015) for this year, given lack of supportive earnings and the negative bias in the MoneyFlow by our broadest (quarterly) measure; one Market Rhythm we’re minding for the Spoo is its daily MoneyFlow (data provider version) to confirm a cross below the 0.50 level: typically this has led to drops in the area of some 140 points, (which in the big picture for the S&P is not that much considering the extreme overvaluation). The Econ Baro looks to metrics including January’s Philly Fed Index and December’s Housing Starts/Permits.

Although not yet an official BEGOS Markets’ component, the Yen is taking a fairly severe hit this morning, the BOJ standing pat on it yield curve. Otherwise at present, the Bond, Euro, Swiss Franc, Silver and Copper all are above their respective Neutral Zones for today; volatility is firmly moderate. By Market Trends, all 8 components are now in linear regression uptrends, reflective to some degree of “money coming into everything” (save for the Dollar) to start the year. Oil’s cac volume has moved from Feb into Mar. And a good number of metrics are due today for the Econ Baro, including January’s NAHB Index, December’s PPI, Retail Sales, IndProd/CapUtil, and November’s Business Inventories. Late in the session comes the Fed’s Tan Tome.

The two-day session continues, now finding the Swiss Franc as the sole BEGOS Market at present above its Neutral Zone; below same are the Bond, Gold, Silver, Copper and Oil; volatility has expectedly broadened to moderate-to-robust. Gold has traded to as high as 1932; now at 1914, by Market Values price is 109 points above its smooth valuation line, a relatively high deviation, and yet a testament to Gold’s volume-driven strength of late. In terms of Market Rhythms, on a 10-test swing basis the most consistent is still the Spoo’s daily Moneyflow study, whilst on a 24-test swing basis ’tis Oil’s 2-hr. Moneyflow study. The Econ Baro starts its busy week with January’s New York State Empire Index.

StateSide physical bourses are closed for the holiday; the BEGOS Markets are up and running via GLOBEX in this two-day session for Tuesday settlement, (with the usual trading halt late in the Monday stint). At present, the Euro, Oil, Copper and Gold all are trading below their Neutral Zones; none of the other components are above same, and volatility is actually moderate considering the off day. The Gold Update points to the yellow metal’s recent rally as both volume and moneyflow substantive, the 1800s now as opportunity for support rather than resistance. The S&P 500 remains extremely high whether measured per our pages by its “live” P/E or broad MoneyFlow. The Econ Baro has 15 incoming metrics due as the week unfolds.

Following yesterday’s vibrant post-CPI (-0.1%) trading, only Gold is at present outside (above) its Neutral Zone for today, and volatility is mostly light. By Market Trends, Oil (in real-time) sees its linear regression having (barely) rotated to negative; that for the Bond remains negative, however that for the Spoo has rotated to positive, (short-lived, we believe, given the dauntingly-high “live” P/E and broader negative MoneyFlow measure, both within the ongoing higher interest environment). Gold has eclipsed the 1900 level as suggested per the weekly Parabolic trend having flipped to Long back on 11 November. (Gold’s All-Time High is 2089, current price is 1906; see too tomorrow’s edition of The Gold Update). The Econ Baro concludes its week with January’s first peek at the UofM Sentiment Survey, plus December’s Ex/Im Prices.

At present the Bond, Gold and Silver are above their Neutral Zones for today; Copper is below same, and BEGOS Markets’ volatility is again light-to-moderate. Across the six prior trading days, Copper has increased nearly 13%, ’tis said as China further opens. The “live” (futs-adj’d) P/E of the S&P is now 38.8x; our MoneyFlow page for the S&P continues to anticipate a broadly lower move in due course. Q4 Earnings Season thus far is feeble, but we’ll see in the next days how the financials fared. December’s CPI and Treasury Budget are among today’s Econ Baro incoming metrics.

The Bond and the BEGOS Markets’ Metals Triumvirate are at present above their Neutral Zones for today; none of the other components are below same, and volatility is light-to-moderate. At Market Trends, Oil (as it appeared to be doing a couple of weeks back) sees its linear regression rotating toward negative: whether that confirms this time ’round (as it did not prior) can be a function per the Market Profile of 75.00 being the most dominant trading price across the past 10 sessions and thus the degree to which that becomes resistance; further overhead resistors are 77.80 and 79.30; Profile support shows at 73.70. Note to readers: entries for the next day or two may not be as timely as usual, and this Saturday’s 687th edition of The Gold Update may be somewhat abridged from the norm.

Both Silver and Oil are at present below their Neutral Zones for today; none of the other BEGOS Markets are above same, and volatility is notably light. For the Spoo, we view yesterday as a failed rally, price being +60 points intraday only to finish “unch”; by Market Trends, that for the Spoo continues to be negative as it has been these past three weeks, albeit rising the “Baby Blues” of trend consistency depict the negativity as been less so; by Market Values, the Spoo (3907 in real-time) is some 70 points below its smooth valuation line, (which in the broader picture is basically noise). Still, the “live” P/E of the S&P remains extremely high at 37.4x, with Q4 Earnings Season now underway, which can be tracked on our page. November’s Wholesale Inventories come due for the Econ Baro.

Starting the week at present above their respective Neutral Zones for today are the Euro, Swiss Franc, Gold, Copper and Oil; the Bond is the only BEGOS Market below same, and volatility is moderate. The Gold Update highlights the yellow metal’s bullish bent to begin the year. The S&P 500 after having been “textbook oversold” for 13 consecutive sessions unwound that stance on Friday. The Spoo itself triggered a Long signal at the overnight open per the daily MoneyFlow Market Rhythm suggestive of a move en route above 4000 (currently 3922); however the separately calculated true MoneyFlow of the S&P itself continues to herald significantly lower levels ultimately being in the offing. November’s Consumer Credit starts the week for the Econ Baro.

Gold and Silver are the two BEGOS Markets at present above today’s Neutral Zones; the balance of the bunch are within same, and volatility is again light-to-moderate. The leading aspect of the S&P’s MoneyFlow remains weak across all three of our timeframes, the weekly read suggesting 72 points lower, the monthly 235 points lower and the quarterly 481 points lower: recall during 2022 that the Index did not reach all the way down to the base of its 3600-3200 support zone, which we anticipate to be in the offing this year, if not lower still should the P/E revert to its mean (as graphically depicted in last Saturday’s edition of The Gold Update). Six metrics hit the Econ Baro to complete its first week of 2023 including December’s Payrolls data and ISM(Svc) Index, plus November’s Factory Orders.

The Bond, Gold and Silver all are trading at present below their respective Neutral Zones for today; the balance of the BEGOS Markets are within same and volatility is light-to-moderate. Even as Oil had fallen some 9 points to being the year, by Market Trends the linear regression remains positive, its “Baby Blues” of consistency having yet to turn lower; broadly on a Market Profile basis, both 72 and 66 appear volume supportive. And by Market Values, Oil at 73.57 is (in real-time) -4.33 points below its smooth valuation line, (although historically that hardly is an extreme deviation); still, yesterday’s close by the Market Magnet appears as nearly 5 points “low”. For the Econ Baro, today’s incoming metrics include December’s ADP Employment Data and November’s Trade Deficit.

Six of the eight BEGOS Markets are at present above their respective Neutral Zones for today; only the Spoo is inside of same, and Oil is below same; volatility is again moderate-to-robust. By Market Trends, the Bond, Copper and the Spoo remain in negative linear regression. Gold is having a firm start to 2023; ’tis not unusual for the yellow metal to get a bid early in a new year: by Market Values, Gold is (in real-time) 87 points above its smooth valuation line; Gold (at present 1865) shows Market Profile support at 1845, then more so at 1828-1825. Silver (now 24.46) has Profile support at 24.25. At our MoneyFlow page for the S&P 500, Flow continues to negatively exceed Index change, suggestive of still lower S&P levels. The Econ Baro looks to December’s ISM(Mfg) Index. And the FOMC’s 13/14 Meeting Minutes come due late in the session.

The Spoo has spurted higher to start the year and is above its Neutral Zone for today as are the Bond, Gold and Silver; the Euro and Swiss Franc are below same, and volatility already is moderate-to-robust with the Euro, Swiss Franc, Gold and Copper having thus far exceeded 100% of their EDTRs for today (see Market Ranges). Even as the precious metals rise, the Dollar too is firm (again per our long-running observance that “Gold plays no currency favourites”). Amongst our Market Rhythms, the most consistent swing results as year-end were (last 10 swings) the Spoo’s daily MoneyFlow study and (last 24 swings) the Spoo’s 60-minute Parabolics. The Econ Baro starts its year with November’s Construction Spending.

As was the case a week ago, the BEGOS Markets take their New Year holiday today, with trading commencing 2023 tonight at 23:00 GMT. The Gold Update cites Gold’s perfectly unchanged year from 1830 to 1830 with quite symmetrical deviations of some 200 points en route up to the high and down to the low. Stressed, too, is the ongoing extreme overvaluation of the S&P 500 be it by earnings (i.e. lack thereof) per the historical track of the Index’s P/E, the departure of the Index from its regression channel, and the truthful level of the MoneyFlow versus the frothy level of the Index; on balance we expect a very difficult year for equities. However for Gold, it only shall breakout upon a curtailing of the arguable price suppression plus realization at large that Gold is a critical asset to hold. The Econ Baro starts its year tomorrow with 11 incoming metrics in this first week.

All eight BEGOS Markets begin the final trading day of the year at present within today’s Neutral Zones; volatility is mostly light. Yesterday’s +1.7% rally in the S&P 500 was not sufficient to unwind the “textbook oversold” trading status, now nine days in duration; regardless, the “live” P/E (futs-adj’d) of the S&P is 37.0x, and by the MoneyFlow page the quarterly reading suggests the S&P be -525 points lower that its present level of 3849. Meanwhile at Market Values, we’ve the Bond as some -2 points “low” from its smooth valuation line, the Euro as +0.028 points “high”, Gold as +51 points “high”, Oil in sync with valuation, and the Spoo as -132 points “low”. And by Market Trends, they are positive for the Euro, Swiss Franc, Gold, Silver, Oil (barely), and negative for the Bond, Copper (barely) and the Spoo. The Econ Baro completes its year with December’s Chi PMI. Happy New Year!

The Bond and Swiss Franc are at present above today’s Neutral Zones; Oil is below same, and volatility is again light. At Market Trends, the Spoo’s “Baby Blues” continue to work lower as the linear regression downtrend becomes more consistent, albeit the S&P 500 itself has recorded its eighth consecutive day as “textbook oversold”; the Spoo (3813) has broken below the aforementioned key support/resistance zone now fairly defined as the 3850s. Oil’s uptrend has lost but all of its consistency, its rising “Baby Blues” now stalling on their 0% axis. By the same construct, both the Euro and Swiss Franc are the firmest of the bunch. The Dollar Index has essentially come off as much as -10% since its September high.

Both Gold and Oil are trading below today’s Neutral Zones; the other BEGOS Markets are at present within same, and volatility is light. At the MoneyFlow page, the differential on the quarterly measure is now -664 points, a leading impetus toward lower S&P levels; still, the S&P 500 just recorded its seventh consecutive session as “textbook oversold”. Specific to the Spoo (3868), the tight 3863-3855 range is building (by Market Profiles) as a key support/resistance band; more broadly (by Market Rhythms) the Spoo’s daily MoneyFlow (data provider version) tops the list of the 405 rhythms run per night; the study’s hindsight swing profit across the past 10 triggers since mid-March is $80k/cac. The Econ Baro awaits November’s Pending Home Sales.

The BEGOS Markets begin the week on a positive note, the Euro, Gold, Silver Copper and the Spoo at present above their respective Neutral Zones for today; none are below same, and volatility is light-to-moderate. The Bond by Market Trends appears within a day or so of seeing its linear regression trend rotate from positive to negative to join both the Spoo and Oil as such, (however that for the latter is rotating toward a return to positive with the balance of the bunch). As fundamentally overvalued is the S&P, it nonetheless shows as “textbook oversold” these last six sessions, and the Spoo by Market Values is (in real-time) -84 points below its smooth valuation line. Again, the MoneyFlow diversion noted in yesterday’s comment is of greater import toward ultimately lower S&P levels.

Briefly as the BEGOS Markets are closed until they commence their new week tonight at 23:00 GMT, we point to our MoneyFlow page for the S&P 500 wherein by the quarterly measure the Flow is -605 points below the Index itself. As this is a leading indicator, we sense it does not bode well for the S&P as it transits into 2023, (nor does the “live” P/E of 36.4x given the historic mean of 22.4x). As penned in the current edition of The Gold Update: “…the S&P 500 (3845) is +62% above its earnings valuation and … Gold (1806) is -53% below its U.S. Dollar debasement valuation…” ‘Twould appear the era of easy money is ending.

The members of the BEGOS Markets’ metals triumvirate are all at present above today’s Neutral Zones; none of the other components are below same, and volatility is still for this time of the session mostly light. Yesterday in pointing to the Spoo’s swiftly falling “Baby Blues” (see Market trends), the high-to-low range was -131 points; our “live” P/E of the S&P is now 35.7x. As well in the overvalued sensed, the S&P itself (3822) by our quarterly MoneyFlow reading is 549 points too high; however by Market Values, the Spoo (in real-time) having come off a bit now shows as 130 points too low, (of course, the MoneyFlow is a broader, bearish measure). The Econ Baro finishes its busy week with metrics including November’s Durable Orders, New Home Sales, Personal Income/Spending and the Fed’s favoured gauge of inflation: Core PCE Prices. Merry Christmas to Everyone Everywhere!

Both the Bond and Euro are at present above their respective Neutral Zones for today; the balance of the BEGOS Markets are within same, and volatility again is mostly light. The Spoo’s “Baby Blues” (see Market Trends) are swiftly falling, the negative linear regression trend becoming more consistently so; consistency is notably unraveling for the positive trends of both the Bond and Copper. As a near-term trading rhythm for the Spoo, the 2-hour parabolic study purely on a swing basis has been repetitively fruitful this December. November’s Leading (i.e. lagging) Indicators come due for the Econ Baro, which also awaits the final read for Q3 GDP.

Both Gold and Silver are at present below their respective Neutral Zones for today; the balance of the BEGOS Markets are within same, and volatility is mostly light. By Market Values, the Bond’s “Baby Blues” confirmed dropping below their key +80% axis, suggestive of still lower levels near-term; at a glance however, the Bond looks more as a sell into strength below 132 rather than an outright sell here at 128, (subject as ever to one’s cash management parameters); by Market Values (in real-time) the Bond shows as 2.5 points “high” above its smooth valuation line; but by its “faster” Market Magnet, the Bond settled yesterday some 2.5 points “low”. For the Econ Baro we’ve December’s Consumer Confidence, November’s Existing Home Sales, and Q3’s Current Account Deficit.

Whilst not an officially BEGOS Market, the Yen is on the move, +3.4% as the Bank of Japan doubles the width of its 10-year Bond’s trading band, the Dollar Index in turn at present -0.6%. Gold and Silver both are above their respective Neutral Zones for today; below same are the Bond, Oil and Spoo; volatility is moderate-to-robust. By our Market Values page (in real-time): the Bond shows as +3.2 points “high” above its smooth valuation line, the Euro as +0.04 points “high”, Gold as +65 points “high”, Oil as -8.90 points “low”, and the Spoo as -133 points “low”. The Econ Baro receives November’s Housing Starts and Building Permits.

The busy StateSide Econ Data week begins with the Euro, Swiss Franc, Gold, Silver, Copper and Spoo all at present above their respective Neutral Zones for today; only the Bond is below same (Oil is quiet), and volatility is light-to-moderate. The Gold Update again lays out a case for 1900 (current price 1806) as the fundamentalists face off against the technicians guarding the overhead resistance of the 1800s in general. The Spoo (even though up early on) has confirmed its linear regression trend having rotated to negative (see Market Trends); the S&P’s “live” (futs-adj’d) is 36.1x. And the Econ Baro awaits December’s NAHB Housing Index.

The Econ Baro recorded a fairly negative day yesterday on a bevy of weakening metrics (as we’ll outline in tomorrow’s edition of The Gold Update). In turn this jolted most of the BEGOS Markets in the face of rates (per the Fed) to extend to an even higher levels than initially sought when this increase cycle commenced. For today, we’ve the Bond, Silver, Oil and the Spoo all at present below their respective Neutral Zones for today; none are above same, and volatility is light-to-moderate. As anticipated by Market Trends, the Spoo’s linear regression has (in real-time) rotated to negative as its “Baby Blues” drop below their 0% axis; Oil remains the only other component whose like trend is negative. The S&P looks to begin Friday with its “live” P/E at 36.7x and yield 1.716% vs. that for the 3-month T-bill at 4.213%.

Down is the watchword into a busy Econ Data Thursday: save for the Bond and Oil which are just marginally down, the balance of the other six BEGOS Markets are all trading below today’s Neutral Zones; volatility is already moderate-to-robust; Gold which is -1.7% and Silver which is -3.5% have thus far respectively traced 152% and 137% of today’s EDTRs (see Market Ranges). At Market Trends, the Spoo is still clinging to its marginally positive linear regression uptrend; and by Market Values (in real-time) the Spoo (even -0.9% at present) is 62 points above is smooth valuation line, albeit that gap appears destined to close. For the Econ Baro which concludes its week today, metrics include December’s NY State Empire and Philly Fed Indices, November’s Retail Sales, IndProd/CapUtil, and October’s Business Inventories.

Ahead of the FOMC’s final Policy Statement and Powell Presser for 2022 — and following yesterday’s rampant volatility — all eight BEGOS Markets are at present priced within their respective Neutral Zones for today; volatility is again light (but doubtless shan’t so stay come the Fed at 19:00 GMT). Yesterday’s Spoo closed -126 points (at 4054) off the intraday high (of 4180); the MoneyFlow for the S&P was weaker than the Index’s net gain when the dust finally settled +29 points. Still by Market Trends, the Spoo’s linear regression is positive, albeit its consistency has waned considerably these past two weeks. With the Fed in the balance, the Econ Baro looks to November’s Ex/Im Prices.

Both Gold and Copper are at present trading above their respective Neutral Zones for today; the other BEGOS Markets are within same, and volatility is light. Yesterday’s S&P gain was sufficient to maintain a positive linear regression trend for the Spoo by Market Trends; thus Oil continues to be the only component whose such trend is negative. Stocks’ rally pushed the “live” P/E of the S&P now up to 38.4x (futs adj’d). Market Profile support for the Spoo (basis March) is 3994-3992. The Econ Baro awaits November’s CPI. (Note: tomorrow’s post will be delayed from this usual posting time, but we look to get it in ahead of the Fed).

he Spoo by Market Trends

The Bond begins the BEGOS Markets’ week as the sole component trading at present above its Neutral Zone for today; below same is Gold, and volatility is mostly light. The Gold Update points to price whilst still in a near-term rise as losing upside consistency: mind the “Baby Blues” at Market Trends; Gold’s weekly parabolic Long trend remains intact although the year-over-year linear regression trend continues to rotate to negative as it has been doing since mid-June. In real-time for the Spoo, the 21-day linear regression trend has rotated from positive to flat, (albeit 32 points of fresh premium in the March contract can right the ship there); still by earnings, MoneyFlow and Market Values, the S&P/Spoo remains significantly expensive, certainly so with far more attractive U.S. Treasury debt yields. The Econ Baro starts its week with November’s Treasury Budget.

The Swiss Franc, Copper and the Spoo are trading at present above today’s Neutral Zones; the balance of the BEGOS Markets are within same, and volatility again is light as our Market Ranges continue to narrow. The Spoo’s cac volume is rolling from December into March, the latter’s premium being +31 points (one of the highest we recall) with short-term money trading at a comparably high yield. The price deviations from valuation that we noted in yesterday’s comment continue to remain excessive and well-worth watching (via Market Values) toward year-end and as 2023 gets underway: price always resolves to valuation, (albeit valuation itself also shifts at a ponderous rate from day-to-day). The Econ Baro completes its week with December’s UofM Sentiment Survey, November’s PPI, and October’s Wholesale Inventories.

All eight BEGOS Markets are at present within their respective Neutral Zones for today, and volatility is light. By our Market Values page for the five primary components (in real-time): the Bond is nearly +8 points “high” above its smooth valuation line, the Euro +0.03 points “high”, Gold nearly +77 points “high”, Oil nearly -16 points “low”, and the Spoo some +26 points “high”. At Market Trends, Oil continues to be the sole component with a negative linear regression; however for trend consistency, the “Baby Blues” are falling for the Euro, Swiss Franc, Gold and the Spoo. Specific to the S&P 500 the “live” (futs-adj’d) P/E is 37.2x and the yield 1.671% (vs. the three-year U.S. T-Bill at 4.183%). Save for Initial Jobless Claims, ’tis a quiet day for the Econ Baro.

Copper is the sole BEGOS Market at present trading outside (below) its Neutral Zone for today; session volatility is mostly light. Oil’s (74.25) two Long signals have exceptionally failed, the “Baby Blues” at Market Trends running out of puff as price retests recent lows, and the daily Parabolics having confirmed flipping back to Short; (as we’ve reminded over these many years, cash management is paramount to being correct about market direction, and this Oil event is a perfect example to move on to other opportunities). Too, Market Ranges (save for Oil and Silver) have been narrowing of late which impinges price following through from otherwise reliable Market Rhythms and studies. For the Econ Baro today we’ve October’s Consumer Credit plus the revision to Q3’s Productivity and Unit Labor Costs.

As ‘round this time yesterday, all eight BEGOS Markets again are at present within today’s Neutral Zones; volatility is light.  Oil made a lurch higher yesterday however has since fallen back to now to 77.71:  still by Market Trends, Oil’s “Baby Blues” continue a fresh climb (meaning the downtrend is becoming less consistent)  and the daily Parabolics continue their relatively new Long course; by Market Values (in real-time) Oil shows as a full 11 points below its smooth valuation line.  For the S&P 500, by the MoneyFlow page, the Flow has improved vis-à-vis the Index on both the daily and monthly measures; but on the quarterly graphic, the Flow is 431 points below the Index.  October’s Trade Deficit comes due for the Econ Baro.

All eight BEGOS Markets at present are within their respective Neutral Zones in beginning the week; volatility is light-to-moderate. Oil’s “Baby Blues” (see Market Trends) confirmed curling up above their -80% axis, indicative of higher price levels near term: currently 80.08, a run into the 84s appears reasonable; too, Oil’s daily Parabolics flipped to Long on Friday; (and obviously, OPEC and Russia are affecting the fundamental front). The Gold Update maintains its bullish bent, albeit acknowledging the overhead resistance here in the 1800s. The “live” P/E of the S&P (as fut’s adj’d) looks to start the trading week at 38.8x, which ought be unsustainable on the back of the inverted yield curve. The Econ Baro awaits November’s ISM(Svcs) Index and October’s Factory Orders.

Early on as the Econ Baro awaits StateSide Payrolls data for November, we’ve not surprisingly all eight BEGOS Markets at present within their respective Neutral Zones for today; volatility thus is light.  There is the sense for the S&P 500 that a complacency to accept the risk of the extremely overvalued Index has returned, albeit we doubt it lasts as long as it has during other such periods, (i.e. when the “live” P/E resides in the upper 30s as it is today), especially with safer and more attractive U.S. debt yield available. Gold (with the help of +15 points of February contact premium) yesterday regained 1800 for the first time since 15 August; too, the Dollar Index is down to its lowest level (104.555) since early August. We’ll include the BEGOS Markets’ year-to-date standings in tomorrow’s edition of The Gold Update.

Following yesterday’s FedSpeak-driven rallies, the BEGOS Markets begin December with moderate volatility early on; the Swiss Franc and Gold are at present above today’s Neutral Zones whilst Copper is below same. The “live” P/E of the S&P is (a futs-adj’d) 39.3x , an unconscionably high level given the positive interest rate environment: the return from the three-month U.S. T-Bill (4.253%) clearly is better than twice that of the S&P (1.617%) … and without the downside risk. The Spoo by Market Values is (in real-time) now 211 points above its smooth valuation line. The Econ Baro’s metrics parade continues and includes November’s ISM(Mfg) Index, plus October’s Construction Spending, Personal Income/Spending, and the Fed’s favoured gauge of inflation: Core PCE Prices.

Gold is the only BEGOS Market at present trading outside (above) its Neutral Zone for today; session volatility is notably light. By the S&P MoneyFlow page, the Index per the quarterly measure shows as 511 points above the flow, indicative of materially lower price levels; too by Market Values, the Spoo (in real-time) reads as 112 points “high” above its smooth valuation line; thus far today, the Spoo has traded fairly in between its two most dominant Market Profile apices: 3958-3970; the “live” P/E of the S&P is 36.9x. ‘Tis a busy day for the Econ Baro with November’s ADP Employment data and the Chicago PMI, October’s Pending Home Sales, and the second look at Q3 GDP. Late in the session comes various FedSpeak and the Fed’s Tan Tome.

‘Tis an up session thus far across all eight BEGOS Markets, with Gold, Silver, Copper, Oil and the Spoo all at present above their respective Neutral Zones for today; volatility is already firmly moderate. Looking at Markets Rhythms, the most consistent on a swing basis (10-test module) are the Swiss Franc’s 30-minute Price Oscillator and (24-test module) Gold’s daily Parabolics. At Market Trends, the “Baby Blues” for both the Euro and Swiss Franc are just beginning to exhibit running out of upside puff; thereto by Market Values, the Euro (in real-time) reads as 0.0268 points “high” above its smooth valuation line. The Econ Baro begins its parade of 16 incoming metrics over these next four days with November’s Consumer Confidence.

The week begins with the Bond at present above its Neutral Zone; below same are Silver, Copper, Oil and the Spoo; BEGOS Markets’ volatility is light-to-moderate.  The Gold Update cites price resiliency even as the most recent Econ Baro metrics have indicated some improvement and interest rates are couched to keep rising regardless of pace.  Oil (74.22) has not traded this low since last December; it remains the only component by Market Trends in negative linear regression.  Copper’s cac volume is rolling from December into March; soon to follow shall be that for Silver and the Bond, with Gold to roll into February.

The two-day session continues with both the Swiss Franc and Silver at present below their Neutral Zones; the balance of the BEGOS Markets are within same, and volatility is moderate at this point for the combined session. Going ‘round the horn (in real-time) for the primary components’ Market Values:  the Bond is nearly 4 points “high”, the Euro more than 0.03 points “high”, Gold 54 points “high”, Oil 9 points “low”, and the Spoo 204 points “high”.  The yield on the three-month U. S. Treasury Bill is 4.200%; that on the S&P 500 is 1.674%.  By Market Rhythms, on a 10-test basis, the most consistent study is Copper’s 15-minute MACD, whilst on a 24-test basis ‘tis the Bond’s two-hour Parabolics.

StateSide ’tis Thanksgiving: thus we’ve a two-day “Friday” session underway for the BEGOS Markets with a five-hour trading halt today (Thursday) at 18:00 GMT and an abbreviated trading session on Friday itself with all components closed by 18:45 GMT. Not surprisingly, all the products are at present within their respective Neutral Zones. By Market Trends, upside consistency is improving per the “Baby Blues” for the Bond, Euro, Swiss Franc and Spoo; for the metals triumvirate, the uptrend consistency continues to weaken; and for Oil itself, the trend itself remains down. The S&P’s brief session tomorrow will commence with the P/E at an extreme 37.7x (as presently marked to the Spoo in real-time), the Index itself “textbook overbought” through the past 10 trading days (two weeks).