6/15/23 Fed: Let’s Pause, But We’re Not Done


Markets opened just 1 hour after getting the latest Producer Price Index (PPI) report. For manufactures…

  • Prices fell -0.3% month-over-month
  • Year-over-year prices were up just +1.1%, well below the Fed’s target of 2%

But the real newsmaker was The Fed itself. Here’s what you need to know—straight from the Fed Chair himself…

Image from AP
  • Due to “potential headwinds,” the “interest rate [is] unchanged”–as expected
  • However, “further rate increases will be appropriate this year”
  • “Inflation pressures continue to run high,” and The Fed “has a long way to go”

While markets took a dive when Powell suggested more rate hikes are ahead … The indexes ended Wednesday mixed and without any significant change to report…

  • Dow Jones -0.7%
  • Nasdaq +0.4% 
  • S&P 500 +0.1%
  • Russell 2000 -1.2% 

Sector Round Up

The sectors stayed tame as well. +/- 1% was as far as any sector strayed from its previous close.

4 of the 11 sectors ended Wednesday’s session higher.

At the top…

  • Technology (XLK) +1.0%
  • Consumer Staples (XLP) +0.6%
  • Real Estate (XLRE) +0.6%

At the bottom…

  • Materials (XLB) -0.4%
  • Energy (XLE) -1.0%
  • Healthcare (XLV) -1.0%


Short sellers were handed a signal to sell small-caps on Wednesday…

RUT Daily Candles – Chart by thinkorswim

After a solid 9-day rally, the Russell 2000 hit a wall at a long-term resistance level.

Yesterday’s close completed a bearish engulfing pattern which typically means a draw-down is at hand.

Your latest readout…

Due to the mixed signals and bullish long-term outlook, we have not initiated any new positions today.

We did close our long position in small-cap MVIS for a small gain.


Friday will end with the second triple witching of the year.

Beware, as contracts expire, volatility can increase.

After tomorrow’s close, the markets will kick off a 3-weekend in observance of the Juneteenth holiday on Monday.


*Low Float
^Open Position

*UTME support at $2.20, resistance at $2.40
*PPSI support at $7
*^GSIT support at $7
INOD support at $10 / $12
AAOI resistance at $4
^NA support at $2.40
AMTX support at $6
SYM support at $40 / $45
MRSN support at $9
^PLAB support at $23
UPST support at $35
^AI support at $40
CVNA support at $20
NVTS support at $9, resistance at $10
MRNS support at $10

Secondary watchlist—float 100+ million

SEEL resistance at $1.10
ACHR on watch
NEXT support at $7
^IOT on watch
GOL support at $4.50
DHC on watch
JOBY on watch
RKLB support at $5.50
SOFI on watch
^PLTR resistance at $16
CCL on watch

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