Stocks are… not quite sure what to do on the heels of the latest Consumer Price Index inflation data, which came in at expectations.
CPI year over year was 2.5% versus consensus expectations of 2.6%, so slightly better but not by much. Excluding more volatile food and energy prices, the number was 3.2% versus a consensus of 3.2%.
I was expecting the numbers to be much better, and Fed Chair Jerome Powell has egg all over his face because inflation hasn’t gotten any better after a year.
Bonds are falling, which tells me the Fed shouldn’t lower rates, but rather should raise rates. So this is not bullish news at all, which is a bit of a surprise to me.
That said, I’m becoming less bearish on the chip sector because the chip sector ETF is bouncing off its 200-day moving average. That doesn’t mean it’s time to jump back in just yet because there’s still resistance ahead, but money is starting to flow back in.
Keep an eye on the $265 level for SMH. I’m not considering any longs until that happens.
Speaking of bouncing, the Nasdaq 100 (QQQ) coming off its quarter to date VWAP…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. The Go-to System for Trading Volatility?
When it comes to trading…
You want to put yourself in a position to excel in both bull and bear markets…
That way you can make confident trades through periods of both high and low volatility…
And the “M-Spike” trading system could be one of the strongest that I’ve ever seen when it comes to doing that.
The system is designed to help us find opportunities that could generate better results from markets that have a lot of movement.
Due to the upcoming presidential election, there’s bound to be plenty of movement in the months ahead…
And while we cannot promise future returns or against losses, I believe the “M-Spike” trading system is going to be even more powerful throughout the rest of 2024 and into the foreseeable future.
