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Trendsters,
Yesterday's PPI numbers might have raised a few eyebrows, but here at Traders on Trend, we see a silver lining – a potential golden opportunity, even. It's like finding a hidden gem in a dusty attic: you just need to know where to look.
So, grab your coffee (or tea, we don't judge) and get ready for a day of market insights that could reshape your portfolio. We'll dissect yesterday's report, revealing the nuances that most are overlooking, and explore how a well-informed approach, like the kind you'll gain in our upcoming 2024 Options Trading Mastery Workshop, can help you turn market fluctuations into profitable trades.
Plus, our Chart of the Day shines a spotlight on Apple, highlighting its potential for a meteoric rise. Could this tech titan be the next big thing in your portfolio? We'll explore the possibilities.
And that's not all! We have a lineup of market-moving news and some unexpected, fun facts to keep you entertained while you stay ahead of the curve. Let's make today profitable. |
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Elon’s New AI Device is About to Shock the World |
That's Elon Musk's new A.I. device...
And according to 30-year Silicon Valley and Wall Street veteran Eric Fry... A man who picked 41 plays that jumped 1,000%+... It could be bigger than the iPhone. In fact, soon you could be wearing a device like this...
Click here to see the details
because Eric believes a lot of people will get wealthy from this new invention. |
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Stocks Bounce Back From PPI Surprise |
Tuesday saw U.S. stocks rise as investors absorbed an unexpectedly strong Producer Price Index (PPI) report and looked ahead to today's Consumer Price Index (CPI) report. Semiconductor shares led the charge, pushing the Nasdaq Composite® ($COMP) to a record high close.
The Labor Department reported that April's PPI jumped 0.5% from March for both the overall rate and the core rate, which excludes food and energy prices. This exceeded analysts' expectations of a 0.2%-0.3% increase. However, the surprising April figures were softened by downward revisions to March's numbers. After an initial dip, stocks quickly recovered.
Attention now shifts to the CPI report, expected to show slight moderation from earlier price pressures. Analysts remain cautious, aware that any unexpected results could impact market stability. According to the Schwab Center for Financial Research, "CPI is expected to indicate easing core inflation, but the market remains vulnerable if the report doesn't show progress."
Key Benchmarks and Market Movements - S&P 500® Index (SPX): +25.26 points (0.5%) to 5,246.68, the highest since March 28.
- Dow Jones Industrial Average® ($DJI): +126.60 points (0.3%) to 39,558.11.
- Nasdaq Composite ($COMP): +122.94 points (0.8%) to 16,511.18.
- 10-year Treasury Note Yield (TNX): Fell over 3 basis points to 4.449%.
- Cboe Volatility Index® (VIX): Decreased 0.18 to 13.42.
Among notable companies, Home Depot (HD) reported mixed quarterly results on Tuesday. The home improvement giant beat earnings expectations but missed on revenue, initially causing shares to drop. However, after reaffirming its full-year guidance of a 1% decline in comparable-store sales and a 1% increase in total sales, the stock ended with a minor 0.1% loss. Strategic Insights
Given the current environment, it’s crucial to monitor today's CPI report for indications of inflation trends. A softer CPI reading could bolster rate-sensitive stocks, especially in the tech sector. Keep an eye on semiconductor and AI stocks, which have shown resilience and potential for growth. Additionally, staying informed on retail earnings can provide valuable insights into consumer spending patterns and market sentiment. |
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$25,000 into $109,616 in two months? |
Hey trader, Today I want to show you how our research shows you could’ve grown a $25,000 account into $109,616.12 within the last TWO months. You see, former multi-million dollar hedge fund manager Roger Scott spent the better half of 2023 developing what might be the most advanced trading tool that exists…
It’s a revolutionary software system that tracks the moves of institutional investors…. in real time… Which means we can now pile into the same exact stocks institutions are buying or selling… as it’s happening.
And in the last 2 months, this system has scored an insane 93.5% win rate across 60+ issued trade alerts…
Giving over 450 regular traders like you a chance to nail 56 winners out of 60 issued trades. Now I’m not promising you’ll get the same results… or that you won’t have any losses…
But if you want to see how this new trading tool works plus get in on the very next trade…
Go here to watch the most recent trading workshop video at no charge.
Enjoy!
*Stated results are from hypothetical options applied to real published trades from 10/30/23 - 12/26/23. The result was a 93.5% win rate, an average return of 13.7% including winners and losers and average hold time of less than 24 hours. Performance is not indicative of future results. Trade at your own risk and never risk more than you can afford to lose.
By clicking the link above you agree to periodic updates from The TradingPub and its partners (privacy policy) |
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PPI-n' Needles: A Prickly Situation or Just a Little Pinch?
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Yesterday's PPI report was a bit like a surprise visit to the doctor's office. You expect a routine check-up, but instead, you get a jab in the arm. The higher-than-expected numbers certainly caused a momentary sting, but as we saw, the market quickly recovered. It turns out this "prickly situation" was more of a miscommunication than a cause for alarm. The jump in April's producer prices was largely due to revisions in March's data. Think of it as the doctor realizing they misread your chart initially.
Now, all eyes are on today's CPI report, the equivalent of getting your blood pressure checked. Will it be a sigh of relief or another unexpected jolt? Only time will tell.
But hey, even if there are a few more surprises along the way, remember, a little discomfort now can lead to a healthier market later. So, roll up your sleeves, Trendsters, and let's see what the doctor has to say today! |
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Apple’s Next Move – Riding the Bull |
Apple Inc. is primed for another bullish run according to our Elliott Wave analysis. The chart paints a picture of optimism, starting with a strong upward impulse wave labeled (1) through (5) from early to mid-2023. This initial surge is characteristic of a robust bullish phase. Then comes the expected breather – a corrective A-B-C pattern from mid to late 2023. This correction looks like an expanded flat, a type of wave pattern where wave B exceeds the start of wave A, and wave C dips below the end of wave A. It’s the market’s way of catching its breath before the next climb.
Looking ahead, we anticipate another five-wave impulse wave. Our target range for this upward move is $199.62 - $203.01, a high-probability zone for the next peak. For the more cautious, $178.33 serves as a conservative target.
However, if Apple’s price slips below $164.08, the current bullish outlook could be invalidated, potentially pointing towards a bearish trend with an expanded target around $157.29.
Key technical patterns to watch include the middle channel and acceleration gap, which can act as support or resistance levels. Keep an eye on the impulse wave trendline, as it underscores the overall bullish direction. |
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New Trade Opportunity Forming Inside Tesla |
If you could only trade ONE ticker for the rest of your life… What would it be? MSFT?
AAPL?
AMZN?
For me, it’s hard to say…
But for top trader -Lance Ippolito- he’s ALL IN on TSLA…
That’s because it’s given folks like us a shot to target money-doubling returns every six days.
I don’t know any other stocks that have the potential to do that.
But thanks to a new market anomaly studied by Princeton, Vanderbilt and even the SEC…
We can now target gains around 100% or more — from Tesla — on a weekly basis...
In fact his research shows it’s happened 23 times over the last year…
He believes this new Tesla-specific trade is so profound, he’s even made a video for you on how it works.
So, if you have 30 minutes, click any of the links and watch this video now.
The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. The trades expressed are from historical data in order to demonstrate the potential of the system.
By clicking the link above you agree to periodic updates from The TradingPub and its partners (privacy policy)
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PPI: Smoke and Mirrors? The Bullish Signal Wall Street Overlooked
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Yesterday's PPI report, while initially sparking concerns of persistent inflation, may actually be concealing a bullish catalyst for the stock market. A deeper examination of the data reveals that the reported surge in producer prices was primarily fueled by downward revisions to March figures. Without these adjustments, April's inflation would have aligned with expectations, echoing Fed Chair Powell's assessment of the report as "mixed" rather than alarming.
This revelation is significant because it highlights a growing disconnect between producer and consumer price inflation. For years, businesses have successfully passed on rising costs to consumers. However, recent trends suggest this dynamic is shifting. Consumers, feeling the pinch of inflation, are now pushing back against price hikes, forcing businesses to absorb higher input costs.
This shift is corroborated by various regional Fed business surveys, which show input price pressures rising while selling price pressures are declining. This means businesses are increasingly shouldering the burden of inflation, potentially leading to a softer Consumer Price Index (CPI) report expected today. Should the CPI indeed confirm a moderation in consumer inflation, it could trigger a market rally, particularly in rate-sensitive sectors like AI. These stocks, already benefiting from increased investment and promising earnings growth, stand to gain even further from a potential decline in inflation and subsequent interest rate cuts. The road ahead, however, is not without its challenges. Market volatility remains a concern, and careful stock selection is crucial.
In this uncertain environment, investing in your own knowledge can be the wisest move. That's why we at Traders on Trend is offering the 2024 Options Trading Mastery Workshop for just $97. This comprehensive workshop will equip you with the tools and strategies to confidently navigate the market, regardless of its twists and turns.
While the PPI report might initially seem like a hurdle, it could actually be a stepping stone towards a more bullish market. The key lies in understanding the underlying details and recognizing the potential opportunities that emerge as the inflation narrative evolves. Remember, the best investors are not those who simply react to headlines, but those who can analyze the data, anticipate trends, and position themselves for success. |
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From Alibaba's Slump to GameStop's Meme Mania
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Several companies saw significant stock price movements driven by analyst ratings, quarterly earnings, and other news: - Alibaba (BABA): Dropped 6% after reporting a sharp decline in quarterly net income.
- Boston Beer Company (SAM): Rose 0.3% following an upgrade to "buy" from Jefferies Financial Group, citing strong sales in flavored malt beverages and ready-to-drink cocktails.
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GameStop (GME): Surged 60%, continuing Monday's 74% jump as meme stocks rallied. This surge followed reports that "Roaring Kitty" posted on Reddit for the first time in three years.
- Google (GOOGL): Gained 0.7% after announcing Gemini 1.5 Flash, its most efficient artificial intelligence model.
- Newell Brands (NWL): Added 5.7% after Barclays upgraded the stock to "equal weight" from "underweight," citing an improved demand outlook.
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Sony Group (SONY): Soared 6.7% after surpassing quarterly revenue expectations.
- United Airlines (UAL): Jumped 1.3% on a strong summer travel outlook, including a record projection for Memorial Day weekend with about three million travelers.
The earnings calendar for today includes Cisco Systems (CSCO), Dole (DOLE), and Toyota Motor (TM). On Thursday, semiconductor company Applied Materials (AMAT) and farm equipment manufacturer Deere (DE) are set to report. All Eyes on CPI Report
Investors are closely watching today's CPI report following the Labor Department's downward revisions to March's PPI, now showing a 0.1% month-over-month decline in both overall and core rates. This revision provided some optimism, but today's CPI figures will likely have a greater market impact.
April's overall CPI is expected to rise 0.4%, matching March's increase, while core CPI is forecasted at 0.3%, slightly down from March's 0.4%. Year-over-year, overall CPI is expected to drop to 3.4% in April from 3.5% in March, and core CPI may fall to 3.6% from 3.8%.
Fed leaders emphasize the need for more evidence of sustained inflation decline before adjusting rates. Fed Chair Jerome Powell, speaking in Amsterdam, noted the necessity of patience, indicating that recent inflation readings suggest a continued need for restrictive policy.
Traders are currently pricing a 65% chance of a rate cut by the Federal Open Market Committee's (FOMC) September meeting, with a 94% chance of rates remaining unchanged in June and a 71% chance of no change in July, according to the CME FedWatch Tool. Our analysts suggest that it might take three months of softer inflation readings or labor market weakness for the Fed to consider cutting rates. |
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MARKET MUSINGS & TIME CAPSULE |
Random Musings
If the stock market were a rollercoaster, would yesterday's PPI report be the unexpected loop-de-loop? Or just a minor bump on the track? Could the Fed's approach to inflation be compared to a game of Jenga? One wrong move, and the whole tower could come crashing down.
They say money talks. But what's it whispering to us about the CPI report? If stocks were characters in a novel, would Apple be the protagonist, always leading the charge? Or the unpredictable wildcard, keeping us on our toes?
Is investing like cooking? You need the right ingredients (stocks) and the perfect timing (entry and exit points) to create a masterpiece. On this day in history, May 15 1718: James Puckle, a London lawyer, patents the world's first machine gun. A reminder that innovation can be a double-edged sword, both in the market and on the battlefield.
1862: President Lincoln establishes the Department of Agriculture. A nod to the importance of understanding commodities and their impact on the economy. 1911: The Supreme Court orders the dissolution of Standard Oil under antitrust laws. A reminder of the ongoing tension between corporate power and fair market competition. 1940: Nylon stockings go on sale for the first time in the U.S. A symbol of consumer demand and the power of new products to drive economic growth.
1972: Okinawa reverts to Japanese control after 27 years of U.S. administration. A lesson in the geopolitical shifts that can influence global markets. |
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Today, the market feels a bit like a mood ring – one moment it's flashing green with optimism, the next it's turning a cautious blue. The PPI report gave us a brief scare, but the market's resilience reminds us that it's not just about the numbers, but how we interpret them.
As investor Jim Rogers once said, "I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime." Perhaps that's the lesson for today, Trendsters. While the market may be indecisive, the opportunity for profit is always there, waiting to be picked up by those who are prepared. So, stay informed, stay focused, and keep your eyes on the prize. And remember, even when the market throws you a curveball, there's always a chance to turn it into a home run. |
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Disclaimer:
Trading foreign exchange, stocks, options, or futures on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience.
This newsletter provides general information that does not take into account your objectives, financial situation or needs. The content of this newsletter or our website must not be construed as personal advice. COE Media is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. You should seek advice from an independent financial advisor.
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