6/14/23 Time to Sell the News?


The latest CPI inflation report showed continued cooling.

  • Year-over-year prices were up just +4%, the lowest rate in 2 years
  • Month-over-month gains were modest at just +0.1%
Chart from US BLS

Lower energy costs are driving the slowdown.

The market welcomed the report with open arms. The indexes all posted gains Tuesday…

  • Dow Jones +0.4%
  • Nasdaq +0.8% 
  • S&P 500 +0.7%
  • Russell 2000 +1.2% 

Sector Round Up

10 of the 11 sectors ended the session higher.

At the top…

  • Materials (XLB) +2.3%
  • Industrials (XLI) +1.1%
  • Consumer Discretionary (XLY) +1.0%

The lone loser barely lost any ground…

  • Utilities (XLU) -0.0%

Artificial Intelligence, Real Gains

AI continues to be the hottest theme of the year…

Image from The Verge
  • The Beatles plan to use AI in place of John Lennon in an upcoming album
  • The market made Nvidia (NVDA) the 7th US company to top $1 trillion market cap
  • AMD (AMD) is launching a new chip to join in the boom

On the heels of the hype, shares of C3.ai (AI^) jumped 15% on Tuesday

  • The stock is now up 147% since the beginning of May
  • There was no specific catalyst to drive the latest gains
  • Tuesday’s surge added about $600 million in market cap to the company … Its value is nearing $5 billion


The Dow Jones became the latest major index to log a technical breakout…

DIA Daily Candles – Chart by thinkorswim

It also joined the overbought club.

Charts are pointing higher, but the RSI levels suggest buyers will grow tired soon.

Your latest readout…

Perhaps this is a sell-the-news situation…


At 8:30 this morning, we’ll get another inflation reading in the form of the PPI report.

But the real newsmaker of the day will be The Fed.

At 2 PM, the latest interest rate will be announced. It’s widely expected to stay the same, marking an end of rate hikes.

At 2:30, Fed Chair Powell takes the stage. His words are likely to move the market more than the rate announcement.

Remember, a sell-the-news situation is possible.


*Low Float
^Open Position

*UTME support at $2.20, resistance at $2.40
*GSIT support at $7
VERA support at $10
AAOI on watch
^NA support at $2.40
AMTX support at $6
SYM support at $40 / $45
PLAY support at $44
MRSN support at $9
GRCL support at $5
^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
^IOT on watch
^MVIS support at $6
DHC on watch
JOBY on watch
RKLB support at $5.50
SOFI on watch
^PLTR support at $14, resistance at $16
CCL on watch

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