I always say when earnings start to come out higher and higher, expectations for even better reports set in…
But it also means prices move up, too.
As a direct result of strong earnings, the XLY, an ETF that tracks consumer discretionary stocks in the S&P 500, has jumped above my “buy zone” (or the $187 level) and its 200-day moving average.
Stock futures fell and the markets opened lower following higher-than-expected Consumer Price Index inflation data — and more in Thursday’s stock market recap.
The CPI rose 7.5% year over year versus the 7.3% expected, remaining at a 40-year high. This caused the major indices to give up the ground they gained from strong earnings.
It also puts more pressure on the Federal Reserve to move forward with its planned interest rate hikes, which are expected to begin in March.
This certainly isn’t good for the rally we were seeing build in the major indices, but it's especially bad news for Consumer Discretionary and Technology, as these sectors typically sell off when interest rates rise.
In this stock market recap video, you’ll learn whether bonds are ready to revert higher… the key levels on today's major Fed report… one sector we need to pay close attention to today…. plus my top ETF and option complete with price levels and strikes.
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
Tired of working around the clock trying to beat the market? We’ve got it covered.
Joy of the Trade’s Jeff Zananiri is revealing a way traders could get ahead of the game by focusing on the start of every month with his monthly flow picks — each of which takes just a few minutes to execute.
This market strategy has already signaled month-long paydays like 105%... 201%... and even 423%!
Many traders who are just starting out have a strong belief that swing trading strategies must be complex to be profitable. But this simply isn’t the case…
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