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CPI down big BUT YoY still high at 3.5
Will be less neg for July as gas is falling slower… AND CPI YoY still runs too hot…
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SPY continues to lose momentum
weak July …AND VIX still reasonable at 18… 4 month cycle is turning….
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Gas down -12.5% June
3 weeks in…big change from May (quite high). 5 months up… Also …when oil surges, oil money surges into SPY. Hence, big up in SPY occurred April and May.
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SPY loses momentum also (SPY+OIL)
Upside now is limited to +2-3% to mid-July.
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Oil Trends Down…June is the first month with gas and oil down.
Oil trends down for 3 weeks… CPI trends down but still high…with June to be low… SPY down…BUT still +2% for Jun with up pressure from May but also falling momentum.
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Gas Prices May still 1.47SD BUT SPY volatility (mini-correction) leads to lower prices
Based on average prices…. 9.2% means 1.47SD OR 0.25 + 1.47 X 0.15 = 0.47 CPI BUT liquidity dries up with SPY volatility so prices in June negative. AND Gas prices down for 2 weeks! Average Price for May $4.47 … Continue reading
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CPI on high side 0.47 BUT Oil Trends down and SPY volatility leads to reduced liquidity for Oil.
Volatility in SPY will lead to continued downward pressure on oil and CPI. Previous May did have rising oil BUT SPY was on fire with added liquidity… Let’s say oil falls to $87 (average for Jun) then -15% from May … Continue reading
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Construction in Decline for 2.7 years (Real Estate RE housing home)
Despite record breaking stock rally 2023-2026… The earliest bottom will be 2031 or 8.3y down cycle…
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Gas Buddy -2.4% for May
So CPI will be 0.2 for May….falling inflation now. BUT earliest drop will be Oct.
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