📈Massive Economic Data Looms Friday
Massive Economic data release looms over Friday morning. The CPI will be released at 8:30 am Friday Core CPI month over month is estimated at .5%. This number is extremely important and needs to come in at a level that shows inflation is slowing at a faster pace than expected. Anything that shows the status quo will lean investors to believe more rate hikes of 50 basis points are necessary. This will lead to equities selling down. While Jobless claims are released tomorrow at 8:30 and that is important its not our larger concern. The concern is what goods and services cost and how fast those prices can come down. We are already seeing signs of a slowing economy. Houses for sale are seeing price decreases across the country. The graph below shows the percentage of home with a price drop in April 2022.
Some markets have clearly gotten overheated and a correction was inevitable. This does not bode well for builders. Supply needs to be eaten up first. You can see names like Toll and Pulte grind lower for some time. On the retail front we are seeing some price pressure. Target had to come out this week and lower guidance for the second time in 4 weeks. What is more important then the news is how the markets handle it. Retail stocks came in hard only to bounce back by the end of the day. This is a good sign. It means we are seeing an underlying bid in the market. As long as that continues we will see dips buyers. That brings us back to CPI. Watch how that market acts on the number. Energy will be high. Everyone know that already but more important will be the cost and services of other goods not including oil. Energy continues to be the strongest sector and I see nothing on the horizon stopping it. Watch tonight’s video link below. There are several ideas lining up such as SPOT and baba. Also I cover the indexes in depth.
Let’s Look at our Indexes!
Let’s Look at our Stocks!
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 TSLA FB COIN and more based upon the technical moves today. Pay close attention to what is said about the SPY and how this situation is closer to 2020 than 2022
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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