PPI, a 30-Year Auction and $3 Trillion in Cash: Keep It Simple

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It may seem like money keeps barreling into stocks and bonds, but wealth management companies have a giant problem. According to The Wall Street Journal, American investors are holding more than $3 trillion in retail money-market funds, close to a record high. Cash poured into these funds after the Federal Reserve began raising interest rates in 2022 and yields climbed above 5%. Although the average yield has fallen to approximately 3.49%, investors still favor the safety, liquidity, and certainty of cash.

The concern? Wealth managers believe that investors holding too much cash could fall behind inflation and miss opportunities in stocks and bonds. They are encouraging clients to consider investment-grade corporate bonds, municipal bonds, ultrashort bond funds, buffer ETFs and private credit. Longer-term bonds also allow investors to lock in today’s yields before interest rates decline further.

Many investors remain reluctant after suffering losses in both stocks and bonds during 2022. They are also suspicious of expensive or complicated products and question whether advisers are recommending them primarily to generate additional fees.

The bottom line is that investors value the security of cash, while wealth managers see a massive pool of money that could generate better long-term returns—and more management fees—if moved into other investments.

I get it. As people get older, they do not want to take on higher risk, and clearly the levels of risk have risen, and we see it in the Treasury markets and the endless uptick in volatility. I am not suggesting getting out of stocks and moving into the money markets, but I understand the reluctance, especially after getting burned and what’s going on geopolitically.

The ES traded in a 7748.50 to 7791.75 Globex trading range, with 143k contracts traded, and opened Wednesday’s 9:30 ET regular session at 7791.75, up 42 points or +0.42% after the CPI number came in lower than expected.

After the open, the ES traded 7794.00, sold off 24.75 points down to 7769.25, rallied 12 points up to 7781.25, sold off 17.75 points down to 7763.50 at 10:00, rallied 14.25 points up to 7777.75 at 10:15, and sold off 21.25 points down to a new low at 7756.50 at 10:30. The ES then rallied 20.25 points up to 7776.75, pulled back 16.50 points down to a higher low at 7760.25 at 11:30, rallied 17.25 points up to 7777.50 at 1:00, pulled back to 2 ticks under the VWAP at 7770.25, and rallied 10.75 points up to 7781.00 at 2:45. The ES pulled back to 7770.25 at 3:40 and traded 7773.75 as the 3:50 cash imbalance showed $2 billion to sell, sold off 9.25 points down to 7764.50, and traded 7769.50 on the 4:00 cash close.

After 4:00, the ES rallied up to 7778.00, sold off 10 points down to 7768.00, and settled at 7766.75, up 21 points or +0.25%. The NQ settled at 29820.25, up 194.25 points or +0.61%; the YM settled at 53864, unchanged on the day; and the RTY settled at 3053.10, up 18.10 points or +0.53% on the day.

In the end, it was another day of selling the gap-up open and buying the pullback. In terms of the ES’s overall tone, it acted fine after the early drop. In terms of the ES’s overall trade, volume was a good example of the “dog days of August,” with only 892k contracts, the third day in a row under 1 million and one of the lowest non-holiday sessions of the year.

MiM

The MOC opened with a $1.9B sell imbalance, built from $2.8B of buys against $4.7B of sells. The dollar lean was -62.6% and the symbol lean -55.2%, showing meaningful selling pressure but still short of a true wholesale market sell across the full tape. The sharper signal came from Nasdaq, where the dollar lean reached -76.5% and the symbol lean -72.3%, clearly indicating broad, aggressive selling. The S&P 500 was also heavy at -62.6% dollars, while NYSE sat near -51.5%, a much more rotational reading.

The imbalance steadily moderated after the opening print. Total MOC improved from -$1.9B at 15:51 to -$425.0M by 15:54, then briefly flipped to a $476.0M buy at 15:55. That reversal was not fully confirmed by breadth, with symbol lean still -51.5%. Selling returned at 15:56 and remained modest through 15:58 before another small buy flip at 15:59. The final 16:00 reading settled at -$299.0M with a -61.5% dollar lean, leaving the close negative but far less aggressive than the opening.

Sector flow was heavily divided. Communication Services was the clearest wholesale sell at -94.7% dollars and -75.0% symbols, followed by Materials at -91.2% and -68.9%. Consumer Discretionary and Health Care also showed strong dollar selling at -74.1% and -73.7%. Energy stood out on the buy side at +76.8% dollars, although its -53.3% symbol lean showed that buying was concentrated rather than broad.

The largest sell imbalances included MU, GOOGL, MRVL, AMZN, LLY, NVDA, TSLA, COHR, WDC and LRCX. Buyers concentrated in INTC, XOM, AAPL, DELL, FICO, CVX, GS, KKR and CAT. Overall, the MOC began as a Nasdaq-led sell program, softened rapidly into rotation, and never developed into a sustained market-wide liquidation. The late flips showed competing institutional flows, but the sector and symbol data kept the underlying tone tilted toward selective selling.

How to read the MiM

Daily Breadth Data 📊

For Wednesday, August 12, 2026

• NYSE Breadth: 47% Upside Volume

• Nasdaq Breadth: 62% Upside Volume

• Total Breadth: 57% Upside Volume

• NYSE Advance/Decline: 55% Advance

• Nasdaq Advance/Decline: 58% Advance

• Total Advance/Decline: 57% Advance

• NYSE New Highs/New Lows: 101 / 63

• Nasdaq New Highs/New Lows: 255 / 122

• NYSE TRIN: 1.35

• Nasdaq TRIN: 0.85

Weekly Breadth Data 📈

For the Week Ending Friday, August 7, 2026

• NYSE Breadth: 58% Upside Volume

• Nasdaq Breadth: 67% Upside Volume

• Total Breadth: 64% Upside Volume

• NYSE Advance/Decline: 62% Advance

• Nasdaq Advance/Decline: 72% Advance

• Total Advance/Decline: 69% Advance

• NYSE New Highs/New Lows: 312 / 160

• Nasdaq New Highs/New Lows: 669 / 411

• NYSE TRIN: 1.18

• Nasdaq TRIN: 1.26

Today’s Economic Calendar

PTG Room Summary – For Wednesday, August 12, 2026

Wednesday’s session was a classic summer trading day where discipline mattered more than activity. The bullish overnight framework initially held, but the market settled into a relatively narrow, low-volatility range that rewarded patience and punished overtrading.

Morning Setup

• David opened with the Cycle Day 1 bullish scenario already developing overnight.

• Key acceptance area: 7760 ±5.

• Upside objectives:

  • 7775

  • 7785

  • 7795

• CPI data came in right in line with expectations, providing no major surprise catalyst.

Market Development

• Early action remained constructive for buyers.

• David noted that bulls needed to clear and convert the 7775–7780 zone to gain meaningful upside traction.

• Instead of forcing longs simply because the larger bias was bullish, the room waited for confirmation.

• As the morning progressed, price action became more range-bound and less attractive.

Positive Trading Decisions

• The strongest decision of the day was not overtrading a low-quality environment.

• The room recognized that there were few clean, high-probability setups.

• Traders were encouraged to throttle back aggression rather than chase movement inside the range.

• Stopping early and protecting capital proved to be the right call as the afternoon remained slow.

Education and Risk Management

• David spent time discussing:

  • Risk parameters

  • MFE and MAE

  • Indicator usage

  • Trend and directional lean

  • Proper application of PTG strategy tools

• The emphasis was on using indicators as decision-support tools, not as reasons to manufacture trades.

• Ram summed up the session well: “Good day to learn to be patient and wait for A+ setup.”

Afternoon Conditions

• David described the market as trading in “Summer Rhythms.”

• Conditions featured:

  • Low volatility

  • Relatively narrow ranges

  • Few quality opportunities

• His message was to reduce aggression and avoid unnecessary exposure.

• The later comment, “Aren’t you glad you stopped trading today?”, captured the value of restraint.

Key Lessons

• Correct bias does not guarantee a good trade.

• Wait for important zones to be cleared and converted before committing.

• Low-volatility summer sessions often require a different level of aggression.

• Patience is a trading edge.

• Protecting capital on a poor-opportunity day is a successful outcome.

• A+ setups should be the goal; activity for the sake of activity should not be.

Bottom Line

• The bullish framework was valid, but follow-through was limited.

• The best performance came from traders who stayed selective.

• Wednesday’s biggest win was discipline, patience, and capital preservation.

DTG Room Preview – For Thursday, August 13, 2026

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Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!