9/12 (Fri) ➡️ The VIX increased 2.42% after declining yesterday. All 3 indexes fell🫠🫠🫠 The DJIA, Nasdaq, & S&P 500 closed 0.9%, 0.7% , & 0.73% lower respectively despite Consumer Sentiment improving in Dec. $TQQQ(TQQQ)$
⚠️ 🐂 were trying to push the indexes up but their efforts were futile once the unfavourable economic data were released…🐻🐻🐻 mauled the 🐂🐂🩸
(1) The Producer Price Index (PPI) came in above forecast😓
‼️ PPI for final demand in the 🇺🇸 rose 0.3% month-over-month in Nov 2022, the same as an upwardly revised 0.3% increase in Oct & above market forecasts of 0.2%🥵 Compared to the Nov 2021, producer prices were up 7.4%, the smallest increase since May last year, but higher than expectations of 7.2%🔥🔥
😰 Cost of services went up 0.4%, the biggest gain in 3 months, led by securities brokerage, dealing, investment advice, & related services😅 which jumped 11.3%(We 🐯🐯🐯 contributed to it🙈🙉🙊)
‼️ Cost of goods edged up 0.1%, led by a 38.1% surge in prices for fresh & dry vegetables while gasoline prices dropped 6%.
(2) The Core PPI also came in above forecast😓
‼️ The producer price index for final demand less foods & energy in the 🇺🇸 rose by 0.4% over a month in Nov 2022, after an upwardly revised 0.1% increase in Oct & above market expectations of a 0.2% rise. Year-on-year, core producer prices advanced by 6.2%, after an upwardly revised 6.8% rise & above market forecasts of a 5.9% increase.
🤔 Investors’ weighed how the Fed will react to this new data & sold-off but futures trades suggest a 77% chance Fed will raise interest rates by 50bps next week, with a 23% chance of a 75bps hike, with those odds little changed after economic data of 9/12.
✅✅✅ On a positive note: The University of Michigan consumer sentiment for the 🇺🇸 unexpectedly jumped to 59.1 in Dec 2022 from 56.8 in Nov, beating market forecasts of 56.9, preliminary estimates showed. Current conditions were assessed more positively (60.2 vs 58.8) & the expectations gauge also improved to 58.4 from 55.6, the highest since April.
🥳🥳 Inflation expectations for the year-ahead eased to 4.6%, the lowest reading since Sep m2021 while the 5-year outlook was steady at 3%.
🤔🤔🤔 Surveys of Consumers Director: "Gains in the sentiment index were seen across multiple demographic groups, with particularly large increases for higher-income families and those with larger stock holdings, supported by recent rises in financial markets" ➡️ Loaded retail investors are optimistic BUT VIX is high-does that mean institutions &/or less-loaded retail investors are selling off🔍❓
Sector-Stock trend analysis:
(1) Popular tech stocks are hit again🥊🥊& of the FAANG/MAANG only Meta & Netflix managed to stay above water🛟🛟🛟 $Apple(AAPL)$
(2) Popular chip stocks are ALL hit🥊🥊 $NVIDIA Corp(NVDA)$
(3) Popular 🇨🇳 stocks couldn’t escape as well🥊 but BILI, TME, & IQ stayed afloat🛟🛟$Alibaba(BABA)$
(4) On the EV front, all 🇨🇳 EVs got hit 🥊🥊$Tesla Motors(TSLA)$
Next 2 Indicators to Watch👀 For Market Recovery/Continued 🐻 Market:
(1) Nov CPI 13/12 (Tue)‼️
(2) Dec Rate Hike Announcement + Interest Rate Projection + Press Conference 15/12 (Thu)‼️
🤔💭My Thoughts: I’m keeping 💵💵💵 because market may🪨🪨🪨 again on Tue/Thu even though I really want to buy the dip😅 What about you fellow 🐯🐯🐯❓Love a convo so do share your thoughts in the comments section❣️ Please help to click on the “Like” & “Share/Repost” buttons at the bottom right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
@TigerStars @CaptainTiger @MillionaireTiger @Daily_Discussion (9/12)
Comments
Great update and summary!