Inside the mind of the top investors

XLE 65m level 3 bearish exhaustion into apex of rising wedge. They are flushing everyone before the big reversal

Inflation came in hotter than expected this morning, driven mostly by energy. Consumer prices rose 0.6% in September, lifting the annual rate to 3.7% from 3.4% in August. Gasoline jumped 9.1% in the month and accounted for more than half of the increase. Gas is up 34% from a year ago, energy overall is up 20% and fuel oil is up 74%. Airfares are up 22%.

Grocery prices went the other way. Food at home fell 0.1%, with meat, poultry, fish and eggs down 0.5%, dairy down 0.9% and milk down 2%.

Core prices, which strip out food and energy, rose 0.3% against 0.2% expected, and the annual rate climbed to 2.6%. That’s the number the Fed watches, and it keeps an October hike on the table. The Fed can raise rates and make borrowing more expensive, but it can’t produce more oil. Higher fuel costs work their way into airfares, deliveries and restaurant bills no matter where rates sit.

Stocks opened lower, and our momentum readings are taking the hit. Equal-weight S&P is negative at -26. Small caps are

ES has just generated some downside targets on the hourly chart

The key question is whether it will develop into a trend-down day

A weak bounce in the first 30-60 mins may suggest that

Adding to JNUG long but with a more conservative TP

I thought we were due some consolidation in yields - but hot CPI has pushed yields back up. If we break to new highs, market could get disorderly....

Pretty extreme daily BB squeeze on BEAM, last time a squeeze of this size occured it went +45% in 2 weeks

QQQs holding up relatively well given the kospi shit show. It will gap down into the PUT wall where it will likely find support

The bank stocks in the US and Europe have really sold off on higher long-term yields.

Over time higher yields and a higher Fed Funds/ECB rate is good for the banks. It's why bank ROE's are so much higher in emerging markets.

I own the big European banks and my plan is to sit tight because I expect with time we will see bank earnings continue to grow and beat expectations.

$MP and the bet on Magnets
If you look up charts of demand for magnets you'll notice one thing, even the most conservative projects or estimates show an incredible demand for them with a massive shortage in supply. It's hard to find another material that has this kind of demand especially if you are bullish on the future with electric and hybrid vehicles, wind energy, and humanoid robots.

Currently the biggest market and demand is from electric vehicles through 2030 but if you expand the time horizon another decade to 2030 to 2040 you are looking at a market even larger with humanoid robots.

Elon Musk is wild with his estimates but the amount of humanoids he expects that we'll see by 2040 (10 billion robots) would 186x time the global supply of magnet production and make $MP 20x (would be nice but Elon is quite aggressive on the claims).

Bullish outlooks expect magnet demand to grow 84% by 2035 in just it's base case. 147% if humanoids become a thing.

The new 10X magnet plant targets 10,00