As predicted, the CPI reported destroyed election uncertainty.
The report, building on our case that inflation peaked in June, showed that inflation eased…
- Rising just 7.7% year over year
- 0.4% month over month.
As soon as the report dropped, buyers stormed the markets and didn’t allow a single bear to survive.
- Dow Jones +3.7%
- Nasdaq +7.4%
- S&P 500 +5.5%
- Russell 2000 +6.1%
The Nasdaq logged the largest percentage gain since the market bottom of 2020.
Short sellers covered more positions than all but two other times in the past decade. Those two other times were also near the 2020 market bottom.
Sector Round Up
All 11 sectors ended Thursday significantly higher…
At the top…
- Technology (XLK) +8.2%
- Real Estate (XLRE) +7.7%
- Consumer Discretionary (XLY) +7.3%
Bringing up the rear…
- Healthcare (XLV) +2.5%
- Consumer Staples (XLP) +2.4%
- Energy (XLE) +2.2%
The crypto crash claimed another victim…
Overnight crypto-lender BlockFi stopped user withdraws. It’s reason—to “protect our client,” but it’s the same song and dance that’s preceded every major crypto bankruptcy.
The corporations surrounding crypto aren’t on solid footing. Bitcoin, the asset, is.
On that note, we’ve got a chart to share…
On December 16, 2017, Bitcoin^ peaked at $20,000 for the first time. Almost one year to the day later, it bottomed at $3,100—an 85% decline.
Over the next two years, Bitcoin consolidated. It eventually broke out and reached a new high of $69,000 on November 9th, 2021.
And yesterday, almost exactly one year to the day, it reached a bottom of $15,600, a decline of 77% from all-time highs.
The pattern is too obvious to ignore. Time will tell if it holds.
Back in stock land…
- The VIX plummeted to its lowest level in months.
- RSI levels, the Dow is overbought, other indexes are neutral
- The Put-to-Call Ratio is neutral
It’s Friday, and earnings season is beginning to wind down.
Next week we’ll get a look at housing market data, and the week will end with options expiration.
Next week is also the last full week of trading before Thanksgiving.
Who knows, if we’re lucky, maybe we’ll get the final election results.
*KLXE support at $16
*NINE on watch
SLS support at $5
ARQQ support at $9
^IMVT support at $12
NRDS support at $13
WNC support at $22
ELF on watch
PCVX resistance at $45
MGNX support at $5.50
^CROX support at $80
AGLE support at $1.40
RYAM support at $6
AXON on watch
VIST resistance at $14, support at $12
AVXL support at $13
EYE support at $37
OII support at $14
IGT support at $22
SFM support at $32
ADMA support at $2.85
VVNT support at $8
GILD support at $80