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A Stock Market Breakdown May Be Here Already. The Iran War Oil Shock is Not Why, Says Ilya Spivak

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ticker lesson

Breakdown

0:14lesson

Market sentiment shift after earnings

  • Reckoning after earnings reports
  • Stocks in bad shape despite Google's 200% EPS beat
  • Capeex numbers now deemed too big
  • Sentiment shift underway
2:40S&P 500· ticker

S&P 500 diamond top breakdown

  • Diamond top pattern undone
  • Sloped lines less meaningful
  • Underlying range support critical
  • Price action testing lower lows
5:21NASDAQ· ticker

NASDAQ congestion breakout

  • Clean range breakout with lower highs
  • Retest not rally
  • Price action fizzling
  • Range bottom in play since May
8:08crude oil· ticker

Crude oil wartime highs

  • Approaching wartime oil highs
  • Yields and dollar rising
  • Gold underperforming
  • Inflationary dynamics reemerging
10:50lesson

War trade inflation dynamics

  • Oil spikes as inflationary signal
  • Fed rate hikes expected
  • Yields and dollar rising
  • Gold and dollar rangebound
13:27bonds· ticker

Bond market inflation disconnect

  • Break evens not rising with oil
  • Inflation expectations flat
  • Gold and dollar rangebound
  • Market pricing hawkish Fed
16:14Fed· ticker

Fed rate hike expectations

  • 40 basis points baked in for 2024
  • 64% chance of next week hike
  • 95% chance by September
  • 75% chance by December
19:00lesson

Inflation vs demand destruction

  • Rate hikes may not curb oil-driven inflation
  • Consumer demand destruction risk
  • GDP forecasts weakening
  • AI-driven business investment squeeze
21:47GDP· ticker

GDP growth contraction

  • Atlanta Fed model shows sinking growth
  • Q2 forecasts dropping below 2%
  • Consumer spending anemic
  • Business investment surging
24:34Eurozone· ticker

Eurozone manufacturing/services split

  • Manufacturing above 50 growth
  • Services sector contracting
  • Economy standing still
  • UK mirrors this toxic mix
27:15consumer· ticker

Consumer demand squeeze

  • Flat eating/drinking out spending
  • Healthcare and clothing spending down
  • Consumer retrenchment risk
  • 68% of economy at stake
27:16gold· ticker

Gold long position

  • Still long gold despite range break
  • Range holds at 1.7% growth
  • Position cut in half for risk
27:17bitcoin· ticker

Bitcoin long position

  • Still long bitcoin
  • Range holds
  • Position cut in half for risk
27:18silver· ticker

Silver call verticals

  • Still long silver via call verticals
  • Position cut in half for risk
27:19oil· ticker

Oil long position

  • Still long oil
  • Call vertical and short put vertical
  • Maintain longside exposure

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