.DJI Hits New High! Go Higher or Pullback Next?

Broader market hits new highs after the latest CPI report showed inflation easing April. The Dow Jones Industrial Average has surpassed 40,000 points. -------------- After broader market hits new highs, Will it continue to rise or is a pullback imminent?

avatarJC888
05-15

Wednesday US Market : Spike or Dip ? Plan B Ready!

Producer Inflation data. On Tue, 14 May 2024 - US Producer inflation report for April 2024 was published. It was a disappointment to say the least. The price of things that manufacturers make (producer prices) went up more than expected in April 2024. This is because things like financial services and hotels cost more. In short, it means inflation is still high. Even though food prices went down a little, overall price of things companies sell went up. It is likely that the price of things one buys in stores/shops (consumer prices) will also go up soon. Will the Fed that manages US economy be “forced” to raise interest rates to fight inflation ? Producer Price Index (PPI) - April 2024. Report from Labour Department showed that: Monthly Producer prices rose +0.5% in April, for both Core
Wednesday US Market : Spike or Dip ? Plan B Ready!
avatarJC888
05-15

Robotaxi: Waymo Wins. Tesla Loses. Buy GOOG!

When I came across the post (see below), the first question that came to mind is “Why bother to wait for the big reveal from $Tesla Motors(TSLA)$ robotaxis on 08 Aug 2024?, when the future of robotaxis is already here and a thriving business ? What makes Tesla’s robotaxi is a cut above existing robotaxi services ? Is it tried & tested? No. Is it a viable business model? Absolutely not! Is it recognized and licensesd? No. So why bother? The Post I came across. If you have been seeing more Waymo robotaxis recently in Phoenix, San Francisco and Los Angeles, that is because more and more people are hailing one for a ride. The $Alphabet(GOOG)$ owned company has announced on Twitter/X that it's now servi
Robotaxi: Waymo Wins. Tesla Loses. Buy GOOG!
avatarJC888
05-12

Inflation Grips US Market from 13 May ?

Past Week In Review. US stock market rally started the week strong, with the Dow Jones and S&P 500 reclaiming their 50-day moving averages on Mon, 6 May 2024. The Dow and S&P 500 kept moving toward record highs for the rest of the week while Nasdaq paused. The Dow jumped 2.2% in the May 6 -10's trading week, extending a win streak to 8th trading sessions. The S&P 500 index popped 1.85%. The Nasdaq composite advanced 1.1%. SPDR ETF Sector Tracker. The market rally advance has been broad, as the sector ETFs' performance shows. Leading stocks hail from a variety of sectors, with many sectors flashing buy signals last week. (see below) US Reports Out. May 6 - 10 also saw a handful of US reports out. (1) US Weekly Jobless claims. For the week ending 04 May 2024, US jobless clai
Inflation Grips US Market from 13 May ?
avatarTiger V
05-16

Global Stock Markets Soar as Inflation Eases

Overview of the Markets The global stock markets experienced significant rallies as investors welcomed a cooler-than-expected US inflation report for April. This led to record highs in the US stock indices and positive performances in European and Asian markets. The report will provide a detailed analysis of the performance across major market segments: US, Europe, and Asia, followed by an outlook and insights. US Market: Record Highs Amid Cooling Inflation The US stock markets celebrated notable gains, driven by a slower-than-expected inflation rate for April. The Consumer Price Index (CPI) rose by just 0.3%, below the anticipated 0.4%. This moderation in inflation boosted investor confidence, propelling major indices to record highs. - Dow Jones Industrial Average: The Dow Jones surged
Global Stock Markets Soar as Inflation Eases
avatarMrzorro
05-16
Mild CPI Means All Time Closing Highs[Miser]   Meme stocks are Pulling back after a two day rush! Meanwhile, the S&P 500 broke 5,300 and joined the Nasdaq and Dow Jones ending the day at new record highs after the CPI print. Just after 4 PM EST, the $S&P 500(.SPX)$   traded up 1.17% past an all time high. The $NASDAQ(.IXIC)$   opened, setting an all-time closing high, and kept up a 1.40% climb to finish the day at 16,742.39.   The $DJIA(.DJI)$   reached a record close 39,908.07, up 0.88%.   CPI numbers

Weekly: This week‘s CPI may push the SPX to test a new high

Last Week's RecapThe US Market - The Dow wrapped up its eighth consecutive winning dayThe major averages wrapped up the quiet week on a high note. The Dow posted a 2.16% gain for the period, its best week of 2024. The S&P 500 and the Nasdaq Composite both posted a third consecutive winning week, rising 1.85% and 1.14%, respectively.The last time the S&P 500 was at today’s level above 5200 in late March, the 12-month forward price/earnings multiple was 21. It’s now down to 20.4 due to better reported earnings and the passage of time bringing more distant profit forecasts in the denominator.The 10-year Treasury closed at 4.5% this week after a quick trip to 4.7%. More tentative evidence that equities can absorb somewhat higher yields, within reason, so long as the economy is handling
Weekly: This week‘s CPI may push the SPX to test a new high
avatarMrzorro
05-14
April CPI Preview: Fed Is Likely to Remain Hawkish Despite Possible Core Inflation Alleviation On May 15, the U.S. Bureau of Labor Statistics will release CPI data for April at 8:30 a.m. ET. This will be the first of two CPI releases before the next Federal Open Market Committee meeting on June 12. However, the subsequent May CPI release will be on the morning of the FOMC’s June interest rate decision day. Economists expect U.S. CPI to fall from 3.5% to 3.4% in April, while core CPI will likely fall to 3.6% from 3.8%. Morgan Stanley noted in the latest analysis that "Core CPI inflation steps down in April with weaker services as the main driver. We expect weaker car insurance inflation, continued rents disinflation, and lower healthcare. " Oil prices peaked in April The average crude oil
avatarTiger V
05-16

After the S&P Hits a New Record, What's Next?

The U.S. stock market experienced a significant boost on Wednesday, with the S&P 500 and Nasdaq Composite reaching all-time highs. This surge was fueled by a consumer price index (CPI) report that came in cooler than expected, coupled with flat retail sales, bolstering hopes for Federal Reserve rate cuts in the near future. Key Insights from Recent Data: 1. Consumer Price Index (CPI) Report: - The CPI rose 0.3% in April, lower than the anticipated 0.4% increase. - Year-over-year, the CPI increased by 3.4%, aligning with expectations. - Core CPI, which excludes food and energy prices, met monthly and yearly expectations. 2. Retail Sales: - April's retail sales remained unchanged, falling short of the projected 0.4% increase. 3. Federal Reserve Rate Cut Expectations: - The likeli
After the S&P Hits a New Record, What's Next?

Timing the Market: How to Avoid Getting Trapped?

The U.S. stock market indexes $S&P 500(.SPX)$ and $DJIA(.DJI)$ surged to new all-time highs, as investors and traders capitalized on numerous breakouts across various sectors.In late March, the S&P soared to new heights, only to retract shortly after.Notable stocks like $Netflix(NFLX)$ took a dip of over 9% post-April 18 earnings, while $Meta Platforms, Inc.(META)$ saw a hefty 10% drop after its April 24 earnings report. Yet, these dips were like speed bumps on the road; they bounced back swiftly. Looking at it this way, significant drops might also present good buying opportunities.Why do some companies quickly
Timing the Market: How to Avoid Getting Trapped?

AdamKhoo:New Highs are actually a bullish and not a bearish signal

The $S&P 500(.SPX)$ hit a new all-time-high of 5,500 yesterday. That is the index's 31st time it has hit a new all-time-high in 2024! Increasing, more and more experts are coming on TV to say that the market will crash soon. Is the market hitting a new high a bearish signal? History says no. Since 1950, the $S&P 500(.SPX)$ Has Set 1,250 All-Time Highs along the path to its current level. That’s an average of 16 All-time-highs a year If you break it down by decades, the 1990s had 300 all time highs made. This decade was one of the most bullish, with the S&P 500 gaining +312%. The 2000's had only 13 all time highs. The 2000's was one of the most bearish decades, which saw the dot com crash and G
AdamKhoo:New Highs are actually a bullish and not a bearish signal

Earn 2% a month at least How to ride on S&P

### Why the S&P Will Experience Corrections Regularly😝😝 The S&P 500, like any stock index, experiences regular corrections due to a variety of market forces and investor behaviors. These corrections, which are declines of 10% or more from a recent high, are a natural part of the market cycle. They can be driven by economic data, geopolitical events, changes in interest rates, and shifts in investor sentiment. Corrections help to prevent bubbles by correcting overvaluations, thus maintaining market health over the long term. The model described, where the index rises by a certain percentage (e.g., 2%) and then falls by a smaller percentage (e.g., 2%), mirrors this cyclical nature. For instance, if the S&P 500 rises from 5100 to 5300 (a 4% increase), it might then correct to 5200
Earn 2% a month at least How to ride on S&P
avatarTiger V
05-13

Tech Giants: Shields Against Inflation?

Overview: According to a recent survey by Bloomberg Markets Live Pulse, investing in major U.S. tech stocks isn't just about betting on innovation; it could also serve as a hedge against inflation. With 46% of respondents viewing gold as a traditional hedge against rising prices, nearly a third consider tech giants their preferred choice for this purpose. The survey highlights the dominant role tech companies like Nvidia $NVIDIA Corp(NVDA)$  , Amazon $Amazon.com(AMZN)$  , and Meta Platforms $Meta Platforms, Inc.(META)$   play in the U.S. financial markets, thanks to their expanding influence across various sectors, ensuring stab
Tech Giants: Shields Against Inflation?
avatarTiger V
05-20

Historic Milestone: Dow Jones Surpasses 40,000

Market Overview Global markets presented a mixed bag on Friday, showcasing varied performances across regions. While the US markets experienced moderate gains, Europe saw slight declines, and Asia showed resilience despite global economic concerns. US Markets: Dow Jones Hits Historic High The US stock markets ended mostly higher, with the Dow Jones Industrial Average gaining 134.21 points, or 0.3%, to close at a historic high of 40,003.59. This milestone marks the first time the index has crossed the 40,000 threshold. The S&P 500 also rose, albeit modestly, by 6.17 points, or 0.1%, to 5,303.27. The Nasdaq Composite, however, slipped slightly by 0.1% to 16,685. Despite mixed performances, the overall sentiment in the US market remained positive. European Markets: Earnings Weigh on Sen
Historic Milestone: Dow Jones Surpasses 40,000
avatarTiger V
05-17

DJIA Skyrockets Amidst Debt Warnings: Analyzing Future Trajectory

Overview: In a whirlwind of events, two financial titans, Jamie Dimon of JPMorgan Chase and Ray Dalio of Bridgewater Associates, have sounded the alarm bells regarding the burgeoning debt levels in the United States. Their remarks echo widespread concerns about the broader risks posed by the colossal burden of US government debt, with the US Treasury projecting a staggering $34.6 trillion debt load, surpassing even the size of the US economy. US Government Debt Concerns: Jamie Dimon's Warning: Jamie Dimon, in an interview with Sky News, emphasized the urgent need for the US government to focus on reducing budget deficits and narrowing the gap between annual expenditures and revenues. He stressed the importance of addressing these issues sooner rather than later, warning that failure to d
DJIA Skyrockets Amidst Debt Warnings: Analyzing Future Trajectory
avatarTiger V
05-15

Mixed Signals from Fed Chair Powell

Overview: In his recent statements, Federal Reserve Chair Powell characterized April's Producer Price Index (PPI) as "mixed" rather than "hot," signaling a cautious stance on potential interest rate hikes. Powell emphasized the need for patience amid high inflation, suggesting that interest rates may remain elevated for longer than anticipated. Despite expecting a gradual decline in inflation, uncertainties linger following subdued first-quarter price data, prompting a wait-and-see approach regarding the effectiveness of restrictive monetary policies. Market Segments: 1. Interest Rate Outlook: Powell's remarks indicate a prolonged period of high-interest rates, with the Fed likely to maintain rates within the 5.25% to 5.50% range. This segment examines the implications for borrowing cost
Mixed Signals from Fed Chair Powell

What is the risk of second inflation?

The market is more sensitive to Fed’s rate cut estimate. Whether a second wave of inflation in the US is moderate, has become a new topic of analysis.The next one to two pieces of inflation data are crucial in determining the pace of rate cuts for the year, as current rate cuts are not a response to economic deteriorationInflation OutlookCore CPI is expected to remain elevated around 3.5% in Q3 2024, before a slight uptick to 3.6% by year-end due to base effects.Leading indicators like rents and wage growth are showing signs of moderation, which should help cool inflation in the coming months.Financial ConditionsTightener financial conditions, driven by higher interest rates and tightening credit spreads, are suppressing demand and inflationary pressures.However, there is a risk of a feedb
What is the risk of second inflation?

CPI Numbers Ain't Good for GameStop, Reddit & More?

Shelter CPI has now moved down on a YoY basis for 13 straight months, from a peak of 8.2% in March 2023 (highest since 1982) to 5.5% today.US core CPI cools for first time in six months.Given its long lag vs. real-time rent data, a continued move lower is expected which should lead to a continued decline in core inflation. $S&P 500(.SPX)$ $DJIA(.DJI)$ $NASDAQ(.IXIC)$ImageImage
CPI Numbers Ain't Good for GameStop, Reddit & More?

⚠️ SUMMARY OF US APRIL CPI REPORT

Image SUMMARY OF US APRIL CPI REPORT:Much to the satisfaction of Fed Chairman Jerome Powell, CPI comes in cooler than expected. US CPI rose 0.3% on the month, below estimates for a gain of 0.4%. Headline CPI inflation increased 3.4% Y/Y, matching expectations and slowing from 3.5% in March.U.S. core CPI rose 0.3% M/M, meeting estimates. Headline core CPI was up 3.6% Y/Y, decelerating from an increase of 3.8% in March. That is the lowest since April 2021.Instant Reaction: Stock Futures Rally $E-mini S&P 500 - main 2406(ESmain)$ U.S. Dollar Tumbles $USD Index(USDindex.FOREX)$ Bonds Yields Drop $US10Y(US10Y.BOND)$
⚠️ SUMMARY OF US APRIL CPI REPORT
avatarKYHBKO
05-19

Market Outlook of S&P500 - 20May24 > will S&P500 continues to rise?

Market Outlook of S&P500 - 20May24 Observations: The MACD indicator is on an uptrend. Chaikin Money Flow (CMF) has crossed the zero line in the middle which implies an uptrend. Moving Averages (MA). Both the MA50 line and the MA200 line are on an uptrend. The last candle is above both the MA 50 line and the MA 200 line. Thus, it could be read as bullish for the long term and the mid-term. Exponential Moving Averages (EMA). The 3 EMA lines are on an uptrend. I have replaced Stochastic with CMF to incorporate consideration of volume. Stochastic and MACD are similar with Stochastic being “more active” and more capable for “false” signals. From the various technical indicators, we have a total of 21 showing a “BUY” rating and 0 with “SELL” rating. Investing has a strong buy rating for
Market Outlook of S&P500 - 20May24 > will S&P500 continues to rise?

Quick Thoughts on Why the US Needs to Cut Rates Soon

This is an important week for the US as it will announce PPI data on Tuesday and CPI data on Wednesday. Fed Chairman Jerome Powell is also scheduled to speak on Tuesday, and he is expected to stick to his higher-for-longer script. I reckon that any market correction due to a hotter-than-expected inflation surprise may provide investors and traders with an accumulation opportunity, as I think interest rate cuts are still on the way. The bigger narrative here is that default and refinancing risks are increasing for US companies, especially for speculative-grade firms, over the next several years. Speculative-grade companies, also known as non-investment grade or junk-rated companies, will face $2 trillion in debt maturing from 2024 to 2028. The year-over-year growth rates of speculative-grad
Quick Thoughts on Why the US Needs to Cut Rates Soon