S&P 500 didn‘t sweat Powell testimony day 2, and the opening retail shakeout was heavily bought – especially after a good 10y auction. The surge into the opening bell and strongly risk-on sectoral overview was strongly risk-on and defensives (XLU and XLP) lagged badly behind. AMZN stand TSLA stalled, but there are many great candidates for pushing higher beyond NVDA.

An outlier were financials, but still I delivered a good quick options trade idea on C before the news of its fine were published aftermarket. Same for Ellin on AMD – and most importantly I didn‘t relent during the flushing of opening retail buying, I called at the lows for upswing to resume and beat prior ES highs, which stocks did – offering plenty of opportunities to profit for futures traders. Summed up.

Here is yesterday‘s premium daily stock market analysis – chart and commentary published over an hour before the market open, by and large confirmed by what happened next. Given the level of risks associated with CPI premarket today, fresh longs were a matter of risk-reward preference to me as I consider the downside risks of a negative or almost in line figures today (headline and core) as underappreciated.

(…) While the sectoral composition was risk-on yesterday with financials having a great day, fresh longs should be cautious here – even if nothing macroeconomically changed. Either we‘re going to get an early upswing following the opening bell that would be sold into on Powell (to a lesser degree than yesterday), or caution right from the start, which would increase the odds of picking stocks up (going long by institutions) before the end of the session.

More By This Author: