It is an Interestingly Frustrating Time- Daily Market Update

It is an Interestingly Frustrating Time- Daily Market Update

12th October 2021

Things that keep me up at night.

Energy prices are soring and shortages continue. Supply chain woes hit Apple where they cut forecast as they are not able to get enough chips to deliver the phones they want to. CPI numbers expected to be around 5% and this doesn’t seem to be as transient as expected with Powell now accepting not all parts of inflation are not temporary. US Dollar and 10 year yields continue to rise though today they took a breather and yet Nasdaq closed down. And Tapering is yet to come in November, or will it? JOLT numbers missing expectations. And rising taxes seem to be the central theme on Presidents social media posts. Should Business expand in this scenario or concentrate on efficiencies to deliver returns to investor? That is a question worth pondering on.

NASDAQ 100

Nasdaq closed red and MACD as well as RSI on daily chart indicate there is some more pain to come though we should see a green day is RSI moves to oversold territory. Stocks that advanced were stocks with high multiples which is a little frustrating. The silver lining being there may be opportunities in stocks which are tilting towards value though overall market looks expensive. 

S&P 500

We saw Resorts, Casinos and Cruise stocks up like its an opening up play. It draws some confidence on our win against Delta but was mostly a boring and frustrating day. This considering tomorrow is earnings for major banks covered in our 10th October Daily Review. 

Russel 2000

Holding and investments along with Energy were bullish stocks and it continues to trade in a channel. The exciting part at most on the chart is that bollinger bands are contracting and we see a higher high lower low on Volume flow indicator which could be indication of upward expansion on the Ishares Trust Russell 2000 ETF.

 

JP Morgan Chase & Co.

JPM earnings are pre-market and for the past few earnings we see stock fall after earnings. The Stock as such has been trading in a range. Bollinger bands have expanded which should lead to contraction. With Volume Flow, RSI, CCI & MACD pointing down it looks a little bearish for the stock. Though there could be an earnings and revenue beat with rising yields and hot economy that things could head up.

 

Net Net

These are troubled waters and likely we will see downward pressure until Halloween perhaps proving the aphorism Sell in May and Go Away. Be careful for short term trades though Apple looks like a good buy any time of the year.

Remember, this is not investment advise or trading advise.

 

– Mr. Egg Head

12th October 2021, NJ, USA

P.S.

Forgive my grammar 🙂 

 

Mr. Egg Head

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