News:
The latest CPI report said inflation rose just 3.0% year-over-year. Mind you, The Fed’s target is 2%.
The driving force is Energy…
Over the past 13 months, inflation has come down 67% from 9.1% in June 2022.
The report bested expectations.
The indexes all posted gains…
- Dow Jones +0.3%
- Nasdaq +1.2%
- S&P 500 +0.7%
- Russell 2000 +1.1%
Sector Round Up
Most sectors recorded gains. None fell notably.
9 of the 11 sectors closed Wednesday’s session in the green.
At the top…
- Utilities (XLU) +1.5%
- Materials (XLB) +1.3%
- Communications (XLC) +1.2%
The losers…
- Industrials (XLI) -0.2
- Healthcare (XLV) -0.3%
Notable Name
Drugmaker Recursion (RXRX) saw its stock explode 78% higher during Wednesday’s session.
- A $50 million investment from NVIDIA (NVDA) gets the credit
- The company plans to use the funds to develop AI technology
- At writing, the company has a market cap of $2.1 billion, $800 million was added yesterday
Technicals:
The S&P 500 recorded a new technical break yesterday. You’ve got to look back to April 2022 to see prices this high.
Zooming out to a 3-year overview, you can see an emerging trend…
Note the narrowing trend lines. And notice how tight the trend lines we during the previous bull market.
History doesn’t repeat, but it rhythms. Watch for buying opportunities at the bottom of this channel.
Here’s your latest readout…
- The VIX is near 3-year lows
- RSI levels are all neutral—But nearing overbought
- The put-to-call ratio is neutral
Timing:
Today at 8:30 AM, the last inflation report before the next interest rate decision drops.
The PPI has shown remarkable slowing over the past few months. It could rise and still be under The Fed’s target.
Before we go, we must warn you… Seasonally July is weak. As attractive as the breakout looks, we are sellers at this point and not buyers.
Our outlook is bullish.
Watchlist:
*Low Float
^Open Position
*SIEN support at $3.50
*RMTI support at $5, resistance at $6
*NSPR support at $3
AAOI on watch
GASS support at $4.20
^CIFR on watch
^OSTK support at $30
IREN support at $6, resistance at $7
REKR on watch
UPST support at $40
REAL support at $2.50
ADVM on watch
CVNA support at $30
Secondary watchlist—float 100+ million
RDFN support at $14
MARA support at $16
CLSK support at $6
CAVA support at $46 / $48
RGTI support at $1.60
ACHR resistance ta $5
VRM on watch
LTCH support at $1.40
MVST support at $2.50
AUR support at $3.25