(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
Producer Price Index PPI came at minus 0.5% vs. plus 0.3% consensus. Core PPI came at minus 0.5% vs. plus 0.1% consensus. These are deflationary numbers at producer levels.
In our analysis, taking into account other indicators, the U. S. is in disinflationary mode and not yet in deflationary mode.
Oil is falling and has broken a major support at $47.00.
This post was just published on ZYX Buy Change Alert.
Our models expect more volatility in the U. S. stock market. Consider accumulating up to 65% of the full core position size in the zone of $$24.31 to $27.61. Typically VXX goes up when S&P 500 goes down. As of this writing VXX is trading at $27.46. It does not make sense to have stops on this position. To control risk, consider controlling the quantity and entry points within the buy zone that are line with your risk tolerance. Target zone is $36 to $39.
Those who are not hedged with zero cost vertical option spreads may consider using a very small quantity of VXX as a hedge.… Please click here or the title below to read more.