Newsletter #4: Market relaxation, focus on earnings

Welcome back to the fourth edition—here in my time zone, it's still Sunday, so you won't be able to read this newsletter until Monday. The US markets have had a positive week, and the reason for this is easy to find: with better-than-expected PPI and CPI macro data, the market has driven a "relief rally." Why better than expected? The forecasts had been somewhat "darker," the market was technically oversold... the positioning was SHORT (dealer gamma). Add to that falling yields and rising bonds, all components that ultimately caused a bounce in the market. Here again is the positive weekly performance of the US indices. CME FED Watch And as in...