The weakest stocks are now very vulnerable to any more
rate hikes. The press today made much of the CPI numbers
and the net new Jobs not coming down and made it clear
that the FED was expected to be raising rates one more
time this year, just in time to dampen holiday and December
retail buying, I would add.
Particularly weak today were small caps, IWM, MDY, retail stocks
like Macy's and and the housing stocks' ETF, NAIL. The lowest
Power ranked in the DJI-30 were that indexes biggest lowers,
showing their special vulnerability if the FED does not soon
ease-up on the rate hikes. Weakest were MCD, KO, HS, HD and HON.
They are at the bottom of the Power Ranking table of the DJI-30
below.
The strongest held up well. JPM's earnings rose 35%
over last years.
With the seasonality forces bearish for a month or so,
it would seem necessary for the big tech stocks and
their ETFs to move higher. That puts even more
pressure on NVDA, AAPL, MSFT and QQQ to get
past the resistance-levels they now face. See in the charts
below how their Closing Powers are still uptrending.
If they falter and show red candle-sticks at resistance,
another test of the recent lows will become likely.
Trade TECL by simply watching the trend of NVDA.
