1/13/22 How Record-High Inflation Caused the Market to Climb

Hello! Here’s what’s happening in the market today…

News:

Year-over-year inflation hit a decades-high level of 7%. But we already knew inflation was high. The big number was a headline but not unexpected.

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Month-over-month the consumer price index (CPI) rose by just 0.5%. That number is rather low. And certainly at least what the market had already priced in.

7% was a headline, not news. Inflation could be leveling off. And the market’s reaction was generally positive … Major indexes closed green while the higher risk small caps represented by the Russell 2000 slipped nearly 1%.

Technicals:

No flashing warning lights this morning. I think the Nasdaq still has the most potential this month.

The VIX continues to move lower for a fourth day. (Bullish)
The put-to-call ratio and RSI levels are neutral.

I’m watching Bitcoin as it climbs off of support at $40,000. It could be the bottom but with a death cross forming, I’m going to reserve judgment.

A crypto rally could bring risky trades back to the market.

Timing:

January is historically the best month for the Nasdaq. I’m still long TQQQ riding this wave. My profit target is $160-170+.

Futures went from red to green this morning ahead of the latest unemployment numbers. Not expecting much movement from this report, but will have eyes on it.

Today I’m generally bullish and risk on.

Watchlist:

*Low Float

*BTCS is on watch
BPT has resistance at $6.50
DWAC has support at $66
ASRT has resistance at $2.80
VORB has support at $10
F has resistance at $25

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