To The Moon

Nasdaq (-0.09%) closed under the June support, but not with important volumes. This indecision move might be a result of today CPI’s data. Nothing new regarding the price action, all scenarios are possible: bearish and continuation vs. the 10.000 level vs. a reversal from this support area. $NASDAQ(.IXIC)$

SP-500 (-0.33%) closed in the same area as the last Friday’s low. News is pending, no need to make bets and the volatility might be high. Watching the marked levels for clues. And of course, the amplitude of the moves by assessing the volumes. $S&P 500(.SPX)$

In the news

Fed officials expect higher rates to stay in place, meeting minutes show.

Microsoft cloud leader Scott Guthrie says companies aren’t holding off on cloud spending as inflation mounts. $Microsoft(MSFT)$

Wholesale prices rose 0.4% in September, more than expected as inflation persists. The producer price index increased 0.4% for September, compared with the Dow Jones estimate for a 0.2% gain.

Biden “to re-evaluate” U.S.-Saudi relationship after OPEC oil cut.

Sectors

• Best yesterday sector: Consumer Defensive, then Consumer Cyclical. Worst sector: Utilities.
• Best weekly sector: Consumer Defensive, then Energy. Worst sector: Technology.
• Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.

Sentiment

• NAAIM (weekly, neutral between 70 and 90): 38.11
• VIX (neutral under 20): 33.57
• Equity Put / Call Ratio (neutral between 0.7 and 1): 1.02
• CNN Fear & Greed: 19 (Extreme Fear)

Breadth

• Stocks above SMA40 (neutral between 30 and 80): 21.23%
• Stocks above SMA200 (neutral above 30): 21.64%
• Number of stocks that increased yesterday by more than 4%: 170
• Number of stocks that decreased yesterday by more than 4%: 152
• McClellan Oscillator (neutral between -100 and 100): -62.66

Earnings Reports

PepsiCo PEP 1.82%↑ hikes forecast after higher pricing helps boost revenue. $Pepsi(PEP)$

Third-quarter earnings from Delta Air LinesDAL 1.21%↑are due out ahead of the Oct. 13 open. Analysts are targeting earnings of $1.55 per share for DAL’s third quarter, a vast improvement over the 30 cents per share it reported in the year-ago period. Revenue is forecast to arrive at $12.9 billion (+40.8% YoY).

Other noteworthy earnings reports for today:

What to trade today

As already said in yesterday’s Trading Plan, this environment is not suitable for a trend-following trader. Volatility is still high and today we are about to get the inflation data. Volatility can become higher if the news is not good.

Even if there were some nice price action in certain stocks (see the beautifulINSW 2.36%↑yesterday breakout), the overall market is in a pause mode.

There is no tide yet, just some small waves that move a few individual stocks.

Protect your capital. No FOMO. There’s no need to be the first at the party.

Patience.

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