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Wall Street Mechanics Kicking In Please click here for a chart of iShares 20 Plus Year Treasury Bond ETF (NASDAQ: TLT).
Note the following:
- The chart shows that TLT fell yesterday.
- As we shared with you in the Afternoon Capsule, the reason for the fall in TLT was the poor Treasury auction. For details, see yesterday’s Afternoon Capsule.
- Initially stocks fell on the poor Treasury auction, but the momo crowd bought the dip. Then came Powell’s statement that he was willing to raise rates if needed. The poor Treasury auction and Powell’s statement was a one-two punch that brought in more selling yesterday.
- The chart shows that TLT is being bought this morning but still has a ways to go before reaching the lower resistance zone.
- This morning Wall Street mechanics are kicking in, bringing in buyers in both stocks and bonds.
- University of Michigan consumer confidence and inflation expectation data will be released at 10am ET. The data may be market moving.
- The biggest data point ahead is CPI that will be released on November 14.
- Remember that it is Friday, and short squeezes tend to occur on Fridays. In the early trade, there are signs of a short squeeze.
- As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the protection band.
Magnificent Seven Money Flows In the early trade, money flows are positive in Apple Inc (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), Microsoft Corp (NASDAQ: MSFT), NVIDIA Corp (NASDAQ: NVDA), and Tesla Inc (NASDAQ: TSLA).
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In the early trade, money flows are mixed in SPDR S&P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: QQQ).
Momo Crowd And Smart Money In Stocks The momo crowd is aggressively buying stocks in the early trade. Smart money is