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Thursday, June 17, 2021
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Fed Chairman Powell to Congress: “We do not see any inflation”

#inflation #stocks #bonds #commodities #stimulus

$DIA $SPY $QQQ $RUTX $VXX

Americans do not need aid/relief/stimulus and handouts, they need an open economy and jobs” — Paul Ebeling

The best thing Joe Biden could do right now is stop spending, stop borrowing, stop regulating, and let the economy get better on its own,” economist Steven Moore said Sunday on TV.

There are families that get $100,000 of government benefits. If you can get $100,000 of government benefits for not working, it is going to be hard to get people back on the job,” he added.

Equally serious is the incoming inflation that is as inevitable as it is being ignored by the Biden administration as it is intent on flood the economy with more and more aid/relief/stimulus this year and beyond.

Last wk Fed Chairman Powell said, “We do not see any inflation”

He should get out more economist Bruce WD Barren said: “He should go to the grocery store, should go to the gasoline pump, there is inflation.

Look at grocery prices, they are rising fast.

Mr. Barren noted that gasoline’s price is 1 of the lead indicators of inflation. And it is the 1 thing that most Americans pay right at the pump. It is a big expense for people. The gas price is up 00.35 to 00.40/gal since Mr. Biden was elected. It is creeping up now and going higher.

This is not complicated stuff.

When the Fed is ginning the economy with cash and the government is massively spending money you get more money chasing the same amount of goods. That typically leads to higher prices across the board.

The promise of COVID-19 vaccines will increase consumer confidence in returning to normalcy in the economy. The vaccine is a massive stimulus to the economy and by the end of April, most Americans will have taken the shot/s.

When that happens we will see businesses open, then a rush of prosperity. The financial markets are telling us that now.

Monday, the S&P 500 saw in strongest 1-day rise since June 2020 with the benchmarks US indexes finishing the session at: DJIA +603.14 at 31535.51, NAS Comp +396.48 at 13588.85, S&P 500 +90.67 at 3901.82

Volume: Trade on the NYSE came in at 1.1-B/shares exchanged.

The sentiment is risk-on with more investors showing interest in cyclical stocks while macro economic numbers are signaling a better growth environment domestically and globally.

HeffX-LTN’s overall technical outlook on the US major stock market indexes is Bullish with a Very Bullish bias in here.

  • Russell 2000 +15.2% YTD
  • NAS Comp +5.4% YTD
  • S&P 500 +3.9% YTD
  • DJIA +3.0% YTD

Looking Ahead: Tuesday, Investors will receive the ISM Non-Manufacturing Index for February, the ADP Employment Change report for February, the final IHS Markit Services PMI for February, the Fed’s Beige Book for March, and the weekly MBA Mortgage Applications Index. 

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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