Next week will be another week of danger. The Fed is again positioned to raise rates after this Friday's job report. Most dont realize that the past months' monthly numbers were all revised higher as well. Energy prices are very high, and towards the end of this upcoming week, we get fresh inflation data. All at the same time, that our Congress is a huge disruptive mess.
With higher rates, the psychological +8% on the 30 years fixed will spook the markets (IMO). And car payment delinquencies are at a multi year high. People can't pay their rent, but are making US$1000.00 car payments.
But, watch the situation in the Middle East. This new situation in Gaza and Israel may go downhill quickly with Netanyahu in charge. The consumer economy can't handle the conflicts in Ukraine and now Israel. The implications for oil prices are ominous.
I warned at $AU7.30 that we were on shaky ground. Folks, looking at Lithium stocks, rare earth EFT's, MP Materials, stalling numbers at Tesla, Lucid dropping in value by 15% this week, Rivian down 20% this week, I see no reason that LYC should be spared. With the shorts in control on the ASX, please be mindful. Very mindful. If we break to the red on Monday, we won't stop the bleeding until we see a AU$6 print.
Gas prices are off the scales. Here's a gas station on my way to work (US$/Gallon). Amazon is having its SECOND annual huge sale this week. I guess they need the business. UPC and FedEx announcing discounts on deliveries up to 25% to major customers. The consumer is exhausted.
My patience in this sector is beginning to waine. I bought USXU puts heavily and cheap on Friday.
These are just my observations.
GLTA
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