- Moving the market
This morning, equities went through a moderate retreat as traders absorbed comments from Federal Reserve Chairman Powell.
He stated that “interest rates do not need to move quickly to ease monetary policy,” explaining that the Fed’s policy is now significantly less restrictive, reducing the urgency for adjustments.
Powell also described the economy as “strong overall” with a robust labor market, but he cautioned that, despite easing, inflation remains above the Fed’s 2% target.
The latest inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), are set to be released tomorrow and Thursday, respectively.
Throughout the session, the major indexes managed to recover their early losses, with the Dow and S&P 500 posting small gains, while the Nasdaq suffered a slight decline.
Stocks with the highest short interest lost their upward momentum and dropped sharply, while the Mega-cap tech sector traded sideways and ended nearly unchanged.
Rising bond yields added to the market’s challenges, negatively impacting the dollar. Bitcoin had a volatile day, initially rallying before reversing course and finding support at $95,000.
Meanwhile, gold continued to shine, hitting a new record high overnight before retreating towards the $2,900 level.
Overall, it was a session with minimal gains or losses, but with upcoming inflation figures, market momentum could shift quickly in either direction.
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)
Early in the trading session, the major indexes suffered a decline, dipping into the red.
However, they managed to stage a modest recovery as the day progressed. By the close of the market, only the Dow and the S&P 500 had achieved positive gains, finishing in the green.
Meanwhile, our TTIs fluctuated throughout the day but ultimately registered only minor changes.
This is how we closed 02/11/2025:
Domestic TTI: +4.04% above its M/A (prior close +4.03%)—Buy signal effective 11/21/2023.
International TTI: +5.78% above its M/A (prior close +5.34%)—Buy signal effective 11/21/2023.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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