By: Jeff Cooper
Hit and Run Morning Stock Report: December 14th, 2022
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The Mother Of Turnaround Tuesdays
The Consumer Price Index rose 7.1 % year over year in November, an inflation rate of 3.55 times greater than the Fed’s ideal target inflation rate for a healthy economy.
The DJIA rose 707 points out of the gate on Tuesday before getting crushed, losing 822 points by mid-afternoon.
What will Powell do today after the Mother Of All Turnaround Tuesday’s?
The SPX opened at our Dec 1 square-out of 4080 and extended to 4100.
Then, when 4080 cracked triggering a downside ORB (Opening Range Break) the index imploded.
The SPX 3-Hour Chart is pointing down now so 2 consecutive hourly higher highs will put it in the hourly Minus One/Plus Two sell position.
Should this occur in the 4045 region apx the mid-point of yesterday's range, it would be a potentially sweet risk to reward a short setup.
ETSY, SPLK, and ROKU to mention a few are good examples of the nature of yesterday’s knife-down Crocodile Dundee Reversal.
It’s a very mixed tape however with names like MRNA knifing higher following Monday’s plunge and
TSLA continuing its drive lower down more than 50% in 2022.
In many respects, 2022 has been a Come To Jesus Moment for both the Buy The Dippers and The passive crowd.
The one ineffable trading maxim always rises. That is… reversion to the mean of any strategy or view of the market.
Yields (TLT) and metals (GDXJ) will be interesting today.
GDXJ left an hourly Soup Nazi sell after testing 180 degrees up from the fall low.
TLT is either on track for a pullback to the 103 region or continuation to 112 prior to that pullback.
In sum, the futures ramped 40 points a half-minute BEFORE yesterday’s release of the CPI.
There’s a mole in the Wheelhouse.
Someone continues to look for a graceful exit into 2023.