The Markets' Next Act: 7 Charts That Matter Now and Tomorrow
3 key themes deciding the next direction
Quick note here as tomorrow is a big day in the market. Consumer Price Index (CPI) comes out tomorrow - it is a measure of inflation. Inflation is the story that never ends.
Yesterday we reviewed the Fed’s outline of action with new data. If inflation is too high, it will spook the market. Be prepared for a swing until the FOMC meeting next week.
Here are 7 key charts showing 3 important themes in the market.
Apple Is Not Going To Help The Market
Apple stock tends to do poorly after Apple announcement days. This year’s event was nothing spectacular…mostly a price raise.
And why does that matter? Apple still leads the market most of the time.
Expect a Big Move Tomorrow
From tomorrow to FOMC (Sept. 20th) the market is going to pick a direction. It is hitting a level of resistance. Either it jumps over or ricochets back down.
Here is the S&P 500
Here is the Nasdaq
Energy, Energy, Energy
Energy complex is on fire! 🔥
The oil company ETF (XLE) is knocking hard on multi-year highs with strong momentum as oil prices rise. (Disclaimer: I am long this)
We are the verge of a massive oil shortage 👇. Look at happened in 2022 because of it 👆.
It is not just oil going up, nuclear energy and hence uranium are getting more popular. More expensive oil, means incentives to find alternatives. Here is the Uranium ETF (URA)
A ghost of future past? Energy came back for a second oil shock in the 1970s. We will explore this next week.