August 10, 2022 Mid-week market update
August 10, 2022 Mid-week market update
CPI better than expected
*US JULY CONSUMER PRICES RISE 8.5% Y/Y; EST. 8.7%
Are we right about this? The market is happy that inflation is only 8.5%?
It sounds funny. But people are funny. And we have funny thoughts. And we do funny things.
So this is yet another example of interpretation. It's not the news that matters so much, as it is the reaction to the news.
So what was the reaction?
$SPY closed above the support/resistance line we've been watching. The next spot overhead is the VWAP anchored to the January high.
$QQQ with a solid bounce from the 8-day EMA
$IWM was strong as well and is now right in between the Covid low and January high AVWAPs
$AAPL take a look at Apple now 10 days up without so much as touching the 8-day EMA and it’s now up +31% from the June low
$RBLX also worth noting is this candle on Roblox. The company announced earnings that missed expectations and it was down as much as -20% pre-market before rallying to close up more than 1% on the day.
Again, it's not so much the news, as the reaction to the news that matters. Or in this case, maybe it was the reaction to the reaction.
Whatever the case, it appears the animal spirits are alive and well and that risk appetite is present. We'll see how long this trend can last.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
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