Thursday, March 26, 2026

The Morning Call---The coming CPI shock

 

The Morning Call

 

3/26/26

 

The Market

         

    Technical

 

            Wednesday in the charts.

                https://www.zerohedge.com/markets/stocks-bonds-shrug-oil-apprehension-about-peace-proposal-bitcoin-bullion-bid

 

Note: despite the positive pin action, the S&P remained below its 200 DMA. Stay cautious.

 

                Wednesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/market-performance

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            Bond volatility screams stress.

                https://www.zerohedge.com/the-market-ear/bond-vol-screams-stress-equities-arent-listening

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly initial jobless claims totaled 210,000, in line.

 

                        International

 

The April German consumer confidence index was reported at -28.0 versus estimates of -26.5.

 

                        Other

 

            Overnight News

 

The Pentagon is developing military options for a "final blow" in Iran that could include the use of ground forces and a massive bombing campaign.

 

President Trump has told associates in recent days that he wants to avoid a protracted war in Iran and that he hopes to bring the conflict to an end in the coming weeks. The president has privately informed advisers he thinks the conflict is in its final stages, urging them to stick to the four-to-six-week timeline he has outlined publicly, according to people familiar with the matter.

 

Israeli officials say a US-Iran deal remains unlikely, but fear President Donald Trump could still declare a temporary ceasefire as talks continue.

 

Trump administration officials are examining what a potential spike in oil prices as high as $200 a barrel would mean for the economy, according to people familiar with the matter, a sign senior officials are studying the possible fallout from extreme scenarios for the Iran war.

 

On the stage and sidelines of a global energy conference in Houston, CEOs painted a much bleaker picture: Financial markets aren’t accurately reflecting the gravity of the crisis, the war is crippling the world’s fuel supplies, and the industry’s Middle East operations are at risk, they said.

 

            Iran

 

              The (rumored) Iranian demands for a cease fire.

              https://www.powerlineblog.com/archives/2026/03/for-what-its-worth-4.php

 

            Monetary Policy

 

              $5 diesel fuel, inflation and Fed policy.

                          https://wolfstreet.com/2026/03/24/5-diesel-could-unleash-inflationary-mindset-the-fed-better-not-look-through-inflation-was-already-hot-before-iran-war/

 

              Rate cuts on ice as inflation expectations surge.

              https://www.capitalspectator.com/rate-cuts-on-ice-as-inflation-expectations-surge-at-the-short-end/

 

            Fiscal Policy

 

              Defense spending and the 5% of GDP fallacy.

              https://www.realclearmarkets.com/articles/2026/03/25/defense_spending_and_the_5_of_gdp_fallacy_1172520.html

 

              The government’s weakening data collection system.

  https://www.bloomberg.com/opinion/articles/2026-03-25/michael-bloomberg-trump-assault-on-federal-data-solves-nothing?srnd=homepage-americas&sref=loFkkPMQ

 

              When the chickens come ome to roost.

              Ever Wonder Where $7 Trillion Goes? - by Quoth the Raven

 

            Inflation

 

              The coming CPI shock.

              https://bonddad.blogspot.com/2026/03/updating-kiss-estimate-of-coming-shock.html

 

            Recession

 

              The rising risk of recession.

              https://www.zerohedge.com/markets/rate-reversal-will-be-swift-when-sentiment-cracks

 

            The Dollar

 

              The global dollar plumbing system.

              https://www.advisorperspectives.com/commentaries/2026/03/25/dollars-plumbing-conspiracy-vs-data

 

            The Financial System

 

              Why the semiliquid private credit funds’ liquidity problem was inevitable.

              https://www.morningstar.com/funds/why-semiliquid-fund-liquidity-crunch-was-inevitable

 

     Investing

 

            Reacting to risk.

            https://behaviouralinvestment.com/2026/03/24/one-risk-after-another/

 

            The decoupling of gold from the inflation indexed Treasury.

            https://politicalcalculations.blogspot.com/2026/03/high-striker_01708440736.html

 

The question isn’t whether inflation will go higher; the question is will the bond market ignore it.

                https://talkmarkets.com/article/the-name-is-bond-30-year-not-james-but-whats-the-message-1774458519

               

                Hedge yourself.

            https://www.ft.com/content/043a0d8d-bf9f-4348-b6b5-55303cbf3128

 

                Defensives are expensive.

            https://chartkidmatt.com/p/defensives-aren-t-cheap

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

            Thursday morning humor.

            8 Tips For Getting Through TSA Faster | Babylon Bee

 

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

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