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Below are the latest 3 From The MMP. The Monday Morning Playbook (MMP) is the flagship publication of Beat the Bench, and includes more charts, actionable portfolio allocations and trades, in-depth analysis and a video webinar, all delivered to your inbox at 6am ET every Monday morning.
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With that said, here are 3 noteworthy charts from this week’s edition of The Monday Morning Playbook.
Powell speaks Wednesday, is he okay with this?
Financial conditions, as measured by the Chicago Fed’s index, are now at their loosest since May. We saw a similar easing of conditions in the summer, before Powell’s speech at Jackson Hole sent stocks back to new lows. We all know that inflationary pressures have eased, but the question of the week is will Powell deliver a repeat performance?
VIX testing an important uptrend line
Not only do we have SPX coming up into its downward sloping 200-dma, but we have the VIX Index back on an uptrend line that goes back more than a year. If you were only looking at those two charts, you would say now is the time to sell equities and buy volatility.
Crude has given up almost all gains YTD, energy sector still +60%
Crude oil posted its lowest weekly close of 2022 last week, ending at $77/bbl. That hasn’t mattered to energy stocks, which are up a remarkable 60% YTD and going in the complete opposite direction in recent months.
That’s it for this week, thanks for reading! If you like my work, please consider upgrading to a paid membership and tell your friends about 3 From The MMP.
Scott
Scott Brown, CMT
Founder and Chief Investment Strategist, Beat The Bench LLC