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- "Volatility has stopped being a warning sign and has started acting like a buy signal"
"Volatility has stopped being a warning sign and has started acting like a buy signal"
DC Lite #676
Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.
1. Challenger job cuts. US employers announced 52.8k job cuts in August (+58% MoM, -38% YoY), marking the lowest August total since 2022. On the flipside, they announced plans to hire 12.3k workers (-23% MoM, +725% YoY), marking the highest August total since 2022.
2. Job Misery Index vs. T-bills. “Historically whenever the Misery Index has been as high or higher than it is currently, interest rate policy has generally been in 'easing mode'.”
3. Equities vs. vol spikes. "Volatility has stopped being a warning sign and has started acting like a buy signal."
4. NYSE A/D Line. “The NYSE Composite is maybe the most important index in the world … The NYSE common stock only A/D line is near a big trendline. We've seen some minor breadth weakness the past couple of weeks, but right here and now is a place the bulls need to defend.”
5. Mag 7 vs. Momentum. "For the first time ever, the Magnificent 7 are negatively correlated (read: uncorrelated) with momentum"
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