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Preamble - Attention New Members!
We have many new folks with us at present - we're delighted you have chosen to join us here at our Cestrian Inner Circle service. Don't forget to sign up for our Slack chat environment - it's a core part of the service as it includes plenty of substantial analysis from ourselves and our contributors, and it comes with Trade Disclosure Alerts which tell you when Cestrian staff personal accounts are about to place trades in covered stocks and/or ETFs. If you joined Inner Circle recently but you're not using Slack, check your inbox for invites - and if you don't find the invite, reach out to me personally at firstname.lastname@example.org so we can get you set up.
Animal Spirits vs. Moody's
Friday was quite the day. Personally I started the day fully hedged the indices, having applied the short hedges late Thursday in the light of the Powell speech hitting the market. I sold the short hedges (we use the 3x short index ETFs for hedging) for a modest but worthwhile gain early Friday, than sat back whilst the market ripped upwards and didn't look back. It's not every day one gets both the short and the long side right on all four indices (!) in the same day - so when it happens, time to celebrate, or at least be amused. Right after the close, along comes Moody's with a US debt downgrade, and it remains to be seen how this impacts markets today. Futures have barely reacted overnight - NQ futures are down barely a third of a percent - but New York equity trading hours will tell us the full story.
To prepare for what comes next, let's turn to our usual charts. But before that, a reminder.
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Paying members, scroll right down for our latest take on markets. As always we look at the 10-year yield, the S&P500, Nasdaq-100, Dow Jones and the Russell 2000; we consider long-term and short-term outlooks, and we lay out staff personal account trading plans in each of the indices. We add Bitcoin and Ether futures pricing for good measure. And - NEW! - we now include the 3x index ETFs TQQQ, UPRO, UDOW and TNA.
Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.