11/13 Recap

Flattish day so far, buyers are hesitant before CPI tomorrow morning and after the recent run we’ve had that makes sense. Lots can change quick on CPI data, missing by .1% will lead to a selloff and after we’ve run 10% in 2 weeks on the Nasdaq it is understandable some are taking chips off the table.

The SPY, below, pretty much did what I was looking for last week where we went sideways then you can see Friday the 8 ema had caught up, we moved down, touched it, and then we took off. That’s just simply how markets work, names rarely deviate too from the 8 ema for too long. Now that we got that small tap, we are back over the 100 day and over all the important moving averages. We look great right now, you can see the clear inverse head and shoulders below and if CPI is cool tomorrow, we really could take off. All the pure tech names are already breaking out and those are the heaviest weighting in the market.

The IWM, small caps, also appears to be forming that same inverse head and shoulders as the SPY. Small caps have lagged all year, the underperformance here is very notable and if we are in a bull market these really have a lot of catching up to do. I’m torn as the fundamentals are just terrible here in this interest rate environment but these names look like they want to run, at least short term.

Trends

Unity has taken over the last 2 weeks and in a small name like that the bullish flow is very notable. It was getting to be insane when I highlighted it in Friday’s recap and this morning it had a massive reversal after going red to being +4% now. This has been the hottest name by far the last 2 sessions.

1 Week

2 Week