1/19/23 Heavy Metals, Inflation & Falling Resistance


Markets opened green after the latest PPI numbers showed inflation cooling at its fastest rate since the pandemic began.

  • Goods -1.6%
  • Services +0.1%
  • Total -0.5%
Image from World Economic Form

The report showed prices were lower than expectations, fueling the case that on inflation, the worst is behind us.

The market’s gains, however, were short-lived. 

In the end, the major indexes settled sharply lower..

  • Dow Jones -1.8%
  • Nasdaq -1.2%
  • S&P 500 -1.6%
  • Russell 2000 -1.6%

Sector Round Up

Each of the 11 sectors ended the day in the red.

Falling the hardest…

  • Consumer Staples (XLP) -2.7%
  • Utilities (XLU) -2.4%
  • Industrials (XLI) -1.9%

The smallest losers…

  • Communications (XLC) -1.2%
  • Technology (XLK) -1.3%
  • Consumer Discretionary (XLY) -1.3%

Metal Report

Alcoa (AA) dropped nearly 3% by the close and another 6%+ after reporting disappointing earnings.

Image from Alcoa
  • The company reported bottom-line losses for Q4 & 2022
  • Sales volume increased, but lower prices kept profits down
  • The market cap lost yesterday totaled nearly $1 billion

The Wall Street Journal came out as bullish on metals and commodities yesterday. The AA earnings do not currently support their argument.


Markets tend to turn at resistance.

And the S&P 500’s long-term trend is still down…

SPY Daily Candles – Chart via thinkorswim

And as you can see on the chart above, the market turned at the established falling resistance.

Based on the current readings, we expect this dip to be short-lived. But keep an eye on the marked resistance level. It’s the bear’s last stronghold.


The market will have eye’s on the Philadelphia Fed’s Manufacturing Business Outlook Survey, which is due out at 8:30 this morning.

From the world of big tech, Netflix (NFLX^) reports earnings after the closing bell today.


*Low Float
^Open Position

*NEON on watch
*NINE support at $14
*GP resistance at $4
*BWEN support at $5
CYAD on watch
VERA support at $8
AEHR support at $27.50, resistance at $30
ALGS on watch
DPRO support at $1.20
THRX on watch
LX support at $3
ZYME support at $10
^CROX on watch
AQMS on watch
IRDM support at $60
DADA resistance at $14
MNSO support at $13.50

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