Yesterday the Nasdaq Composite:
- Rallied 2.9%
- Closed 20.7% above its June low
- Officially entered a bull market
The Russell 2000 also jumped 2.9%…
- It’s up 19.3% from its lows
- Nearing an end to its bear market.
Inflation Has Peaked
Headline inflation, per the CPI summary, rose 8.5% year-over-year and 0.0% month-over-month.
Bear in mind this is a single data point…
But it aligns directly with our expectations and that of JP Morgan (JMP).
Here’s their graph. We shared it with you last month too.
Note the headline … “inflation peaked in June.”
Look to The Fed
Markets are pricing in a 0.5% increase next month.
The Fed hiked by 0.75% at the last few FOMC meetings.
April 4th, 2022.
That’s the last time the VIX closed below 20.
Futures are on the rise this morning as RSI levels point to overbought conditions.
- The market needs to cool off.
- But with so many bears fighting the trend, the market could squeeze higher first.
Our outlook remains bullish.
It’s a bull market, you know.
We are still in the middle of earnings season … keep your eye out for surprises.
The big news items we’re anticipating…
- Friday 8/12, Univ of Mich Consumer Sentiment
- Wednesday 8/17, June FOMC minutes release
- Thursday 8/25, Q2 GDP final number
- Wednesday 9/21, FOMC meeting conclusion with rate hike announcement
*FAZE support at $15
AEHR on watch
SUNW resistance at $4
TPIC on watch
COGT support at $12
SIGA support at $20-22
AERI support at $10
ALDX on watch
KOD support at $10
RYTM on watch
TCDA support at $12
VUZI support at $9
RVNC support at $21.50
MRSN support at $6
CYTK support at $50
BLU support at $11
CPRX on watch
Secondary watchlist … +100m float
DVAX resistance at $17.50
ARRY on watch
BFLY support at $6
ABCL support at $12
BNGO support at $2.75
^GERN support at $2