Target (one of the US largest retailers) is down 26% today (ouch)…

Yes, the company wasn’t prepared either for cost inflation that hurt their profitability. Curiously enough, neither were the investors, after all – they expected Target to sail well through this inflation! However, such drops are predictable and statistically inevitable. Why? Look at this eye-opening chart of Target profitability (their operating margins) – being at the ...

Target (one of the US largest retailers) CEO sees a reopening shift in consumer behavior still unfolding:

1) sales of TVs (stay at home) are down big 2) luggage sales (travel items) are up 50% Curiously enough, the CEO wasn’t prepared either for this transition or cost inflation which hurt their profitability. ...

Today was an important day in the markets, potentially foretelling a likely near-term stabilization:

1) interest rates (yields) dropped – despite a higher than expected CPI report 2) USD (DXY) index was for most of the day 3) a few important Emerging Markets Equities started digging out of the rubble: Brazil, China, Mexico The relentless sell-off in Technology and continued outperformance of Energy was a continuation of the trend ...

The ever-changing pattern in the energy inflation mosaic is likely to come from the Natural Gas prices (both in the US and in Europe) overtaking the leadership from the price of crude oil.

Why? The price of Natural gas is far, far less politicized – how many ppl quote natgas prices daily? Adding to the confusion – the units of measurement in Europe and in the US are different (the US uses $/mmBTU while Europe uses Euro/MWH Europe has almost fully greenlighted Natural Gas as a green fuel ...

The market should bounce pretty soon

The key to watch now is now the USD – the greenback.We need to see some weakness in it to pave the road for a market snapback.USD is making multi-year highs but was flat-lining last 2 days. ...

When will this carnage in Equities stop?

We still don’t see signs of decisive reversal, but we can tell you two things with certainty:·       the market would not make a bottom on good news·       it would be on sellers’ exhaustion. ...