The NASDAQ Composite Index posted a fourth-day follow-through yesterday as it blasted through its 50-dma on a 1.86% upside move. Scores of stocks are moving sharply up from their lows of last week as the market finds its QE floor and rallies sharply straight up from the lows. The action is notable in that last week's nearly 12% decline from the peak was the fastest such decline in 80 years. While the current bounce is strong, the speed of the recent decline is noteworthy as a possible expression of the fragility of where things stand and the cautionary stance institutional investors are taking in the current environment.
Futures remain up over half a percent as the bounce continues and CSCO, which is gapping higher by several percent, issues a strong earnings report. Producer prices rose 0.4% in January matching estimates but core producer prices increased 0.4% vs. est +0.2%. Year-over-year, producer prices are up 2.7% and core producer prices have risen 2.2%. Both yesterday's CPI and today's PPI suggest the federal reserve may opt for a more hawkish stance with regard to rate hikes to keep inflation at bay.
Meanwhile, the Philadelphia Fed manufacturing index rose to a reading of 25.8 in February vs. est 21 while the Empire State Index came in at 13.1 in February vs. est 17.5. Both gauges are well above zero indicating improving conditions.Focus List Notes:NVDA
was buyable along its 20-dema per our comments in yesterday's notes. It move up off the line on above-average volume.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2023 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.