Markets rose on Monday ahead of this morning’s CPI inflation data report. The indexes finished at their highs with solid gains…
- Dow Jones +1.6%
- Nasdaq +1.3%
- S&P 500 +1.4%
- Russell 2000 +1.2%
Sector Round Up
Monday’s rally was broad. All 11 sectors ended the day higher.
At the top…
- Energy (XLE) +2.6%
- Utilities (XLU) +2.3%
- Technology (XLK) +2.2%
At the bottom…
- Consumer Discretionary (XLY) +0.3%
- Communication (XLC) +0.8%
- Real Estate (XLRE) +0.8%
Sam Bankman-Fried, the former CEO of crypto exchange FTX, was arrested in the Bahamas overnight. He was scheduled to give testimony to Congress today.
- New York Prosecutors plan to unseal the indictment this morning
- Authorities intend to have him extradited to face criminal charges in the U.S.
- Today’s congressional hearing is set to start at 10 am
- The updated witness list includes only John Ray, the current CEO of FTX
Tesla (TSLA^) fell over 6% on Monday … it was one of the few stocks in the S&P 500 to decline.
- The stock finished the day at a two-year low
- In recent days CEO Elon Musk has taken a hard right stance…
- He called for the prosecution of Anthony Fauci
- And declared war on the “woke mind virus”
The months-old rising support remains unbroken…
The market is well positioned to rise with a good CPI print.
But investors are primed for big moves in either direction…
- The VIX climbed above 25, defying Monday’s bullish push
- RSI levels are all neutral
- The Put-to-Call Ratio is oversold, again
The year’s final headline inflation report is set to be released this morning at 8:30.
Bloomberg published some of JPMorgan (JPM)’s expectations for the CPI year-over-year print.
- Below 6.9% could end the bear market
- Between the expected levels of 7.2% – 7.4%, they expect the market to rally
- Above 7.7% will likely send the market plummeting
This week there is $3.7 billion worth of options set to expire. Expect volatility for the rest of the week.
And remember, the market’s reaction is more important than the news itself.
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