To The Moon

Wall Street paused for a breather Friday following a stronger-than-anticipated producer inflation report that once again caught investors off guard, echoing the heat of a similarly strong consumer inflation report earlier in the week.

⚠️ Trading tips: looking at QQQ puts under 428.4 and calls above 431.35 on Tuesday. Mid-February effects could come into play if channel is broken as posted last week.

The Producer Price Index (PPI) for January 2024 saw a 0.3% month-over-month increase, surpassing the projected 0.1% surge, while the Consumer Price Index (CPI) surged by 3.1% year-on-year, exceeding the forecasted 2.9%, highlighting the ongoing intensity of the inflation battle.

“The January inflation data vindicates the Fed’s wait-and-see approach,” Bank of America economist Stephen Juneau said in a note.

As a result, traders trimmed their expectations for Fed rate cuts, delaying the anticipated start to this summer. Yields surged higher, with the policy-sensitive two-year note yield climbing by over 10 basis points to reach 4.67%.

Blood bath Tuesday?

Futures tied to the S&P 500 slid 0.13%, while Nasdaq 100 futures were down 0.07. Futures tied to the Dow Jones Industrial Average lost 59 points, or 0.15%.

“The Fed will be concerned by the January CPI and PPI reports,” said Bill Adams, chief economist at Comerica Bank. “Momentum has built up in inflation over the last few years, and persists in many corners of the economy. ... January’s inflation data will reinforce the Fed’s inclination to lower interest rates only gradually in 2024.”

Shorted S&P 500 futures on Monday

Auto filled by getting Tiger to trigger

Set profit taking point and go to bed

Automated profit taking at double bottom

⚠️ Trading tips: Out of MES short and holding MNQ short. The uncertainty of NVDA earnings should likely push the market lower at open. Plan the trade and trade the plan accordingly 😉

Holding Nasdaq 100 futures for more 🩸

Tuesday kicks off the shortened trading week after U.S. markets were closed Monday in observance of the birthday of George Washington. Investors will watch for the leading index and economic data on nonmanufacturing in the morning.

Bellwether companies including Nvidia, Walmart and Home Depot are due to report earnings this week and analysts say the results could help dictate the stock market's next direction.

That is especially true for Nvidia, which recently
became the third-largest U.S. company by market capitalization following a nearly 50% climb in its shares this year. Any stock split announcement will push it higher too.

Long term bullish for NVDA! 🚀 

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