12/14/22 Inflation Reading Destroys Market Fears


The CPI inflation data report showed inflation continued to ease in November.

  • +0.1% month over month
  • +7.1% year over year

Look at the chart. The trend is obvious…

The market initially reacted with a massive +2-3% moves to the upside but slowly gave up most of those gains throughout the day.

Still, all four indexes finished with decent gains…

  • Dow Jones +0.3%
  • Nasdaq +1.0%
  • S&P 500 +0.7%
  • Russell 2000 +0.8%

Sector Round Up

9 of 11 sectors ended the day higher.

At the top…

  • Real Estate (XLRE) +2.2%
  • Energy (XLE) +1.9%
  • Communication (XLC) +1.7%

At the bottom…

  • Consumer Staples (XLP) -0.1%
  • Consumer Discretionary (XLY) +0.0%

Notable Names

Vaccine maker Moderna (MRNA) rose 20%, adding more than $12 to its market cap.

  • Its cancer vaccine is showing promising results in mid-stage trials
  • Merck (MRK), which is working on the vaccine too, rose less than 2% on the news.
Images from Shutterstock & Bloomberg

Social media company Pinterest (PINS) added nearly $2 billion in market cap when it surged 12% yesterday.

  • One analyst upgraded the stock, citing “multiple tailwinds” for the company.
  • The analyst suggested a stock “buyback” could be coming
  • Cash reserves are healthy, about $2.7 billion, and rising
  • The price target given is $30, up from $25 … It closed at $26.42 

Bitcoin^ got in on the broader market rally, rising about 5% in the past 24 hours. The original cryptocurrency is trading at its highest level in over a month. Despite headwinds…

  • DOJ considering criminal charges against Binance leadership
  • $3 billion in withdraws from Binance in a 24-hour period
  • Crypto-friendly bank Silvergate Capital (SI) fell 12% after the FTX congressional hearing
  • SI is trading down 92% from all-time highs last November


The VIX rejected the elevated levels it achieved on Monday as soon as headline inflation showed cooling.

VIX Daily Candles – Chart via thinkorswim

The market is showing little fear ahead of the Fed decision later this afternoon.


At 2 pm today, The Fed will announce its latest interest rate. A 0.5% increase is expected. A smaller hike would be extremely bullish.

Fed Chair Powell speaks at 2:30.

Watch the market’s reaction, not the speech.

The market loves Powell.


*Low Float
^Open Position

*CJJD on watch
*USEA support at $4
*BIVI support at $8
*SISI resistance at $2
*CLRO resistance at $1.70
*BBW resistance at $26
*ACER on watch
BAND support at $24
SMMT resistance at $4
PBYI support at $4.60, resistance at $5
FLNC support at $20
ACLX on watch
REPL on watch
PHR on watch
RCUS support at $30
RYTM support at $29
^CROX support at $95
^RYAM support at $8.50
^PRQR support at $1.50
TOUR support at $1.5

Secondary watchlist, float over 100 million

YEXT support at $6
MOMO resistance at $9
PBI support at $4.25
MLCO resistance at $12
WDH support at $2.10
MRNA resistance at $200
RLX support at $2.50
PINS support at $26
TME on watch

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