Crumbs

Quantumscape: escape now, while you can!

Read more on Reddit

From The Market Ear:

This latest melt up in SPX has created several “extreme” readings worth considering;

1, SPX is now some 15% above the 200 day moving average

2, RSI is printing +72 as of writing

3, The last melt up has seen declining volumes…maybe stuff is so hot nobody wants to sell this?

4, over 93% of the components trade above their respective 200 day moving average, a huge figure which eventually has led to SPX correcting

As we all know, overbought and extreme markets can go on for longer than most think. Given the volatility reset we find good opportunities in using relatively low vols to plan hedges via put spreads or replace longs with upside call spreads and other net long premium strategies.

We seem to have been here for about a year, constantly breaking ATHs, but less and less convincingly.

Yields getting pummeled

Alex Manzara captures the recent bond market action perfectly.

Wrap

Basically, all real assets moving ahead. Bonds slightly up, but not matching oil etc. European and US equities have been strong this week. The US dollar trended down this week. The strong dollar of a week or so ago seems a thing of the past. There is a drumbeat of inflation fears, but nothing very concrete. The decision of the Fed to announce “average inflation targetting” without defining the nature of the averaging (the time over which the average is targeted etc.) has started to worry some commentators.