Power Plays Weekly Roundup

January 6, 2023

By Scott Redler

I hope you enjoyed the holiday season, because the action is heating up in the New Year already.

We do have good news though. The market has been range-bound for the past few weeks, but we do have some reason for optimism.

Inflation seems to be getting under control.

Wage growth was light in today's jobs report. Plus we just saw lighter-than-expected CPI reports in Germany, France, and Italy this week.

This is giving some high hopes for a light US CPI next week.

Because if inflation gets under control, that could offset some of the economic weakness impacting earnings.

Don't forget, earnings season kicks off next Friday with the banks like JP Morgan.

My base case for 2023 is that we decline to SPX 3,200 to 3,400, which is why I've been hesitant to recommend names. We've seen plenty of former leaders like Tesla (TSLA), Apple (AAPL), and AMD (AMD) fall off.

But the prospect of better-than-expected earnings as inflation moderates has me considering all scenarios.

As you're reading this, I'm considering several new Power Plays ideas.

So stay tuned for more updates.


Scott Redler Positions Disclosure as of 2023-01-06 at 11.16.23 AM