Here is a quick recap of Markets for the Week of March 15th, 2024 and what we are watching this week 👨‍🏫

The major indices settled with relatively modest declines this week after both inflation readings Consumer Price Index (CPI) and Producer Price Index (PPI) for February came in hotter than expected.

Modestly negative bias as investors await the most anticipated pullback in 2 years!

Here are the key points from last week:

• February Consumer Price Index (CPI) - Report came in hotter than expected. Headline CPI increased 0.4% for the month and 3.2% on an annual basis, which was slightly higher than expected. Core CPI (excludes food and energy), rose 0.4% on the month vs. the 0.3% expected and was up 3.8% on the year against the 3.7% expected. The understanding that the index for shelter (which is expected to lessen in coming months) was the largest factor in the increase soften the blow.

• February Producer Price Index (PPI) - figures increased by 0.6% m/m. This monthly increase was twice as much as economists expected. Although these headline figures certainly contribute to some fears about reemergent inflation, Core PPI figures (which exclude food and energy prices), were up only 0.3% on the month, a touch lower than the 0.5% monthly increase seen in January. This hot read means the Fed might embrace leaving rates higher for longer.

• Treasury rates - had a more pronounced response to the inflation data. The 10-yr note yield jumped 21 basis points to 4.30% and the 2-yr note yield settled 23 basis points higher at 4.72%

$SPY:  S&P 500 has found a little stalling action in this 510-515 trading range. With inflation data now coming in slightly hotter than expected 3 months in a row is this saying something we should put more attention to? 🤔

The Fed is expected to leave rates unchanged this week but all eyes will be on their Fed Dot Plot rate projections for the rest of 2024.

$QQQ:  is also looking a bit tired after a grinding run the last couple of weeks. It closed Friday trying to hold 433 which has acted as support the last 3 weeks.

What is on your shopping list if markets pull back 5-10%?

I do a weekly Markets analysis every Monday at 8:30pm EST via zoom for the Ceni Capital Community I will be speaking about the shift in market sentiment for the next 2-3 weeks, companies reporting earnings and the stocks I am watching for Swing Trades.

If you are interested in making your money work for you by getting our swing trade alerts ahead of time, reply back or comment “Swing Trade” below for more information.

$RNA: our swing from $7.28 tagged our $24 price target for +235% gain last week.

$SOUN:  our speculative swing from $4.22 entry tagged our $9 price target for +111% gain.

Learn to make your money work for you, rather than you chasing it. 

If you are interested in getting our swing trade alerts ahead of time, reply back or comment Swing Trades below for more information.

Watchlist 👨‍🏫

$FDX: FedEx is reporting earnings on Thursday after the close. It sold off sharply in December after missing estimates and then bounced some, was it just a dead cat bounce or more in store?

Estimates expected of $17.62 per share and a revenue of $88.18 billion, signifying shifts of +17.78% and -2.14%, respectively, from the last year.

$XLE: Energy sector ETF has had a quiet +10% move the last 4 weeks trading back to key resistance. Over $92 is a multi-month breakout and just the beginning of a bigger move in play.

$LAC: with the energy sector heating up the last 3 weeks, keep an eye on this old favorite as it may be looking to set up as a swing opportunity.

What are you looking to do different this year that will change where you are a year from now?

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See you next week! 👋