Hi all,
On Thursday we got the CPI data that showed a 0.1% drop versus an expected 0.1% gain. The markets dropped but there was a lot more going on with market internals. While the big tech names dragged the market lower on the news, internals were strong with more stocks advancing versus declining. This reflected a rotation of capital versus an all-out “sell the market”. Money flowed to the small caps as interest rates dropped.
On Friday, the PPI data was higher at +0.2% versus the 0.1% expected. A bit of money flowed back into the high-tech sector making back some of the prior day losses.
Based on this week's data, the CME fed watch tool has a 90% chance of a September rate cut. The economy seems to be still growing, the labor market is still solid, and inflation is trending in the direction the Fed wants. This has investors and traders generally optimistic about a continued move higher.
Let’s see if the earnings season results can keep this market supported and even moving higher.
Recap Video
Sectors in Play Last Week
Key Levels for this Week
What to Watch for this Week
Earnings this week
Positions and Trades Last Week
Tracking for Potential Trades
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