To The Moon

Wednesday:

Stocks closed mixed as traders digested the August inflation data, which came roughly in line with expectations. In line with expectations, the headline consumer prices index surged up 0.6% month-over-month, with higher energy prices contributing to much of the upside.

Core consumer prices climbed 0.3%, slightly higher than the 0.2% uptick expected by economists. The annual rate of core consumer prices cooled off from 4.7% in July to 4.3% in August.

There has been no change in expectations for a Fed pause next week, said fund manager Louis Navellier. “If anything, the market seems to be relieved that the bonds are not trading down, as it’s pretty clear that getting inflation down to the Fed’s 2% target is going to be tough sledding,” he said.

For now, the key is earnings, said Navellier, adding that 2024 has double-digit earnings growth modeled, and as long as that holds, stocks should hold on to the very strong year-to-date gains.

“We’re almost halfway through September with minimal damage. The year remains bullish,” the fund manager said.

Panadol please?

Thursday:

The headline producer price index grew 0.7% in August, coming in above economists’ expectations for 0.4%, per Dow Jones. However, the core PPI climbed by 0.2%, in line with estimates.

Stocks came off a winning session as Wall Street applauded a possible end to an extended technology IPO drought and assessed a fresh batch of economic data. The Dow jumped 331.58 points, or 0.96%, rising for the first time in three sessions and notching its best daily performance in over a month. The S&P 500 added 0.84%, while the Nasdaq Composite climbed 0.81%.  

Arm soared nearly 25% during its market debut Thursday. The stock opened above its $51 per share IPO price and closed at $63.59. The Arm IPO and its success has lifted the animal spirits after a long drought. Would the outcome be a short-lived one just like $VFS, only time will tell.

Overall, health care was the worst performer, eking out a 0.25% gain. U.S. crude oil prices jumped nearly 2% and rose above $90 a barrel for the first time since November, which can be a spoilsport for the stock market.

Contracts expiration together 

Friday:

There are four Derivatives Contracts set to expire on Quadruple Witching. Big players are very active as they adjust their existing positions by exiting, rolling over, or entering new positions.

If possible, it may be wise to proceed with caution or avoid trading on Quad Witching Day. However, if you do choose to trade or have existing positions, the following strategies may be considerable.

* Hedging: Use financial derivatives to hedge your position against sudden price movements.

* Stop-Loss: Set stop-loss (SL) and adjust positions to avoid big potential losses.

* Avoiding New Positions: To minimize risk and fluctuations, refrain from opening new positions unless you are a professional trader or hedge fund manager

Buy call

Buy call

Stocks are headed for a winning week, with the Dow on pace for a nearly 1% gain and its second positive week in three. The S&P and Nasdaq have jumped about 1.1% and 1.2%, respectively, putting them on track for their third positive weeks in four.

Investors are looking ahead to another packed day for economic data. This includes a preliminary September consumer sentiment reading, as well as import and export prices for August. Industrial and manufacturing production data for August are also due.

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