Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for October 13, 2023
The month-over-month CPI (Consumer Price Index) reported at 0.4% vs. 0.3% yesterday, which was slightly higher than expected. This makes two months now that the CPI reported slightly higher than expected.
This is not a material change, but it’s certainly not going in the right direction.
On the basis of this CPI report, the Fed may raise interest rates by .25% on November 1, the next FOMC meeting.
However, as the Fed stated during the last FOMC meeting, “we’re getting close” to where the Fed will feel confident that inflation is in check.
And just this week, three Fed Governors indicated the Fed may be done increasing the Fed Funds rate (short-term interest rates), because increases in bond yields from quantitative tightening (the Fed selling bonds) is doing a lot of the work for them by tightening credit conditions and constraints on consumers.
What is very encouraging is the fact that the NASDAQ has moved off the bottom of its range (13,000 – 14,000) in the past few days, even though the jobs number on Friday was double the number expected (336k vs. 170k).
As I mentioned in my last two The Market This Week sessions, at some point in time, stocks and markets stop going down. This has been true with the NASDAQ recently, which is still hovering very close to moving back above its 50-day moving average.
We still need one of the Big Three to occur before we get out of the Nasdaq 13,000 – 14,000 and take another leg up:
(1) inflation to print a number below 3%;
(2) ten year bond yield below 4%; or
(3) the Nasdaq to close above 14,000 on heavier volume. Any one of these would suffice in any order.
As long as you’re positioned in the right stocks, you’re in good shape and time is on your side!
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A Bit More About Me
My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.
I’ve also:
- Been an adjunct finance professor for nearly 20 years
- Worked as a financial consultant with Merrill Lynch managing millions of dollars
- Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
- Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world
My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions.
My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.
This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.
I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.
Charles Green
Senior Market Analyst, Traders Agency
