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An End-Of-Session Sell-Off Raises Concerns (Technically Speaking For 8/2)

Aug. 02, 2021 6:08 PM ETIWM, QQQ, DIA, SPY13 Comments
Hale Stewart profile picture
Hale Stewart


  • Small-caps took the lead last week.
  • The employment report comes out on Friday.
  • There was a sharp, end-of-the-session sell-off.

Black Bull and Bear
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All charts edged in blue with the word "FRED" in the upper left-hand corner are from the St. Louis Federal Reserve's FRED economic database

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This article was written by

Hale Stewart profile picture
Hale Stewart spent 5 years as a bond broker in the late 1990s before returning to law school in the early 2000s. He is currently a tax lawyer in Houston, Texas. He has an LLM in domestic and international taxation (MagnaCumLaude). He is the author of the book The Lifetime Income Security Solution. Follow me on Twitter at @originalbonddadYou can read his legal analysis on his law office's blog.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (13)

Slicing And Dicing The CPI by Brian


Primer: Core And Median CPI Justification


We face a problem if the underlying trend is rising (or falling). In this case, we should not expect inflation to revert to its historical trend value, rather a rising (or falling trend). Guessing how fast the trend is moving is a nasty problem. We need to look at the rate of change of the rate of change of the price level, which mathematically resembles taking the derivative of the inflation rate.
Salmo trutta profile picture
The FED's tightening, will bring down inflation faster than anyone now realizes. Stocks are going to explode higher.
Salmo trutta profile picture
Not surprisingly, money supply growth is starting to moderate.
Salmo trutta profile picture
"Federal Reserve Chairman Jerome Powell last month told the House Banking Committee “it would be a mistake” to tighten monetary policy “at a time when virtually all forecasters” believe that inflation “will come down” on its own."

But how is inflation transitory if prices don't recede. But any drop in the rate of increase in prices will translate into higher stock prices.
Salmo trutta profile picture
Stocks are just following bonds. Whenever bonds rise, so do stocks.
@Salmo trutta

Why I Am A 5-Year/5-Year Bug by Brian

Salmo trutta profile picture
Foreigners are buying overnight, and domestic holders are selling into their buying.
Salmo trutta profile picture
The 10yr is @ 1.18%. That's temporarily supporting stocks.
@Salmo trutta

For Bond Bears, Patience Is A Virtue

JohnB Investor profile picture
It's one day. I know one thing, I'm not shorting the market.
OlePhart profile picture
An end of session sell off is a sign of hope to frustrated DGI investors who are put off by this overinflated market.
OMG. Market didn't go up today. World is going end.
How significant are after hours pricings? Tonight, SPY et al are up about 1/3 to 1/2 of today's drop after hours. Does this mean anything? A reactive bounce?
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