- Moving the market
The markets began the day on a positive note as traders sought to maintain the post-election momentum.
However, by the end of the session, the major indexes had delivered mixed results. The hope that inflation is under control remains far from reality, a point I have emphasized throughout the year.
Today’s Consumer Price Index (CPI) numbers confirmed that the issue persists. For the 53rd consecutive month, core consumer prices rose on a month-over-month basis in October, with the year-over-year pace accelerating to 3.33%, as reported by ZH.
The headline CPI increased by 0.2% month-over-month, aligning with expectations, and pushing the year-over-year rise to the anticipated 2.6%. However, the Super Core figure, which excludes shelter services, remains at elevated levels.
Traders are now turning their attention to the Producer Price Index, set to be released tomorrow, and the eagerly awaited retail sales data on Friday.
Mega-cap tech stocks saw early gains but ended the day only marginally higher. Bond yields continued to rise, though at a slower pace, while Bitcoin surged past $93,000 before some profit-taking occurred.
In contrast to Bitcoin’s ascent, gold prices fell to near two-month lows, partly due to the dollar’s relentless climb to two-year highs.
Former Wall Street money manager Ed Dowd predicts trouble ahead, believing the economy is on the verge of a downturn. He questions why the Federal Reserve is aggressively cutting rates when some major indexes are at or near record highs.
Could it be that they see what he does—blatant manipulation of government statistics that obscure the true state of the economy?
We will find out soon enough.
2. Current “Buy” Cycles (effective 11/21/2023)
Our Trend Tracking Indexes (TTIs) have both crossed their trend lines with enough strength to trigger new “Buy” signals. That means, Tuesday, 11/21/2023, was the official date for these signals.
If you want to follow our strategy, you should first decide how much you want to invest based on your risk tolerance (percentage of allocation). Then, you should check my Thursday StatSheet and Saturday’s “ETFs on the Cutline” report for suitable ETFs to buy.
3. Trend Tracking Indexes (TTIs)
The financial markets faced a rather uneventful session, with little movement to report by the end of the day.
However, Bitcoin once again captured everyone’s attention with its impressive and relentless climb, surpassing the $93,000 mark.
Meanwhile, our TTIs showed minimal change, reflecting a stagnant performance in the equities market, which essentially remained flat throughout the day.
This is how we closed 11/13/2024:
Domestic TTI: +9.25% above its M/A (prior close +9.19%)—Buy signal effective 11/21/2023.
International TTI: +3.83% above its M/A (prior close +4.04%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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