📈GDP wrecks Technology Stocks 🤖

GDP was released today and shrunk 1.6% vs the estimated -1.5%. Speaking to a European Central Bank forum in Portugal, Federal Reserve chairman Jerome Powell commented “Pre-pandemic world low inflation gone for time being” and the “Process in getting inflation down will involve some pain". Tomorrow marks the end of the 2nd quarter and there might be some window dressing in the best performing stocks of the quarter. This Friday we may see some repositioning in the sectors as funds do not have to report their moves for another 90 days. Tomorrow at 8:30 AM jobless claims data will be released. The current estimate is 228K. Core PCE price index is forecasted to rise .4% month over month and will be announced tomorrow at 8:30 AM. CORE Chicago PMI is released tomorrow at 9:45 AM and the forecast is 58 month over month. All indexes broke below their 5 day moving averages which is bearish. The treasury market rallied with the ten year closing around 3.1%. The high yield bond market sold off with junk bonds being sold the most out of any corporate debt. The spread widening in the 10 yr and high yield shows less risk appetite and therefore not bullish for equities. ISM manufacturing PMI is due out at 10 am on Friday. The estimate is 54.9. Energy was the weakest sector today with health care and consumer staples being the strongest . This usually shows risk aversion to equities. The EIA reported crude oil inventories fell by -2.75M barrels vs the 0.569M consensus. This news is positive for the oil sector but we sold off. Good news + lower prices = bearish sentiment. Overall, there is nothing technically bullish about the current stock market set up even though we are oversold and looking for a bounce we can sell down more. Watch tonight’s video I go over if we setting up for another leg down in the $SPY $QQQ. What indicators to use for signs of a possible crash. Let’s get to it.

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Subscribe and turn on notifications. There is a new daily video after the market Monday through Thursday! It’s called the Top 5 in 5. It consists of the best five ideas for the next day and I condense it into 5 minutes. It’s loaded with actionable ideas. It’s worth your time. It is hyper specific and actionable. Tonight’s includes Longs and Shorts. When you subscribe turn on ALL notifications so you are notified of the daily Premarket live shows ,Top 10 Weekly Buy List and educational videos. Also, Once subscribed you will receive private content on YouTube. The video below is the Top 5 from tonight and focused on large cap tech names. Pay close attention to what is said about the spread on High Yield Bonds and why not to short TSLA here.

As always all investment decisions need to be made by the individual. We all have different risk profiles. No two people trade the same. Understand the buy points, stop losses, trims are suggestions. You need to develop your own process. I am willing to help. If you have questions email me Arete@Aretetrading.net. For example, to stop losses, I like to see them close. That does not mean that fits everyone’s risk profile.

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