News:
The PPI report, which is considered a leading indicator, showed prices rose just 0.1% over the past year.
That’s the smallest year-over-year rise in three years.
Inflation for wholesale prices has retreated from record-high levels. The expectation is that consumer prices will follow.
On the heels of the report, markets climbed for a third day. The indexes all posted gains…
- Dow Jones +0.1%
- Nasdaq +1.6%
- S&P 500 +0.9%
- Russell 2000 +0.9%
Sector Round Up
The buying was widespread. 10 of the 11 sectors closed Thursday’s session with gains.
The risk-on sectors were grouped at the top…
- Communications (XLC) +1.5%
- Technology (XLK) +1.3%
- Consumer Discretionary (XLY) +0.9%
The lone loser…
- Energy (XLE) -0.4%
Crypto Craze
A New York judge ruled that Ripple’s XRP token is “not necessarily a security on its face.”
This ruling means that some cryptocurrencies can be regulated as commodities. This is bullish because it provides some certainty to the crypto and financials industry.
- The Price of XRP rocketed 80% higher in the aftermath
- Bitcoin^ jumped to $31,600, a 52-week high
Stocks related to crypto went fully parabolic in the wake of the ruling. Most crypto prices are rising too.
Technicals:
Markets have reached unsustainable high levels.
RSI levels for 3 of the 4 major indexes are now overbought. The Nasdaq is the most severe…
Overbought conditions have never been maintained long-term.
Expect a drawdown in the near future.
Here’s your latest readout…
- The VIX is near 3-year lows
- RSI levels are mostly overbought
- The put-to-call ratio is neutral
Timing:
Markets tend to bottom in October and peak in July.
For that reason, we are not buying this rally. Instead, we have been taking profits from our risk-on positions that are surging.
Watchlist:
*Low Float
^Open Position
*GREE on watch
*SIEN support at $3.50
*NSPR support at $3
AAOI on watch
GASS support at $4.20
SIFY support at $2.40
EYPT support at $10
^CIFR on watch
EVGN support at $1.30
^OSTK support at $30
IREN support at $7
REKR on watch
UPST support at $40
GDRX support at $7
REAL support at $2.50
ADVM on watch
CVNA support at $30
Secondary watchlist—float 100+ million
RDFN on watch
MARA support at $18
CLSK on watch
CAVA support at $46
RGTI support at $1.60
ACHR support at $5
VRM on watch
LTCH on watch
MVST support at $2.50
AUR support at $3.25