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iPhone 15 Launch, OpenAI At $1 Billion Rate, Four Negative Data Points, Inflation Back In Europe

Published 30/08/2023, 15:21
iPhone 15 Launch, OpenAI At $1 Billion Rate, Four Negative Data Points, Inflation Back In Europe
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Benzinga - To gain an edge, this is what you need to know today.

iPhone 15 Please click here for a chart of Invesco QQQ Trust Series 1 (NASDAQ: QQQ).

Note the following:

  • The chart shows that QQQ has moved decisively above the downward sloping trendline.
  • The chart shows that RSI has quickly gone from oversold to overbought.
  • Both of the foregoing are bullish behaviors.
  • In yesterday’s Afternoon Capsule, we shared with you two new negative data points for the economy. We wrote:

The chart shows when consumer confidence and the JOLTS report were released.

  • Consumer confidence came at 106.1 vs. 116.0 consensus.

  • JOLTS job openings came at 8.825M vs. 9.5M consensus.

  • This morning there are two new negative data points for the economy:
    • The ADP employment change came at 177K vs. 195K consensus.
    • Q2 GDP-second estimate came at 2.1% vs. 2.4% consensus.
  • The rise in the stock market is due to three reasons.
    • Excitement about AI - OpenAI, the creator of ChatGPT, has reached a $1B run rate.
    • iPhone 15 will be launched on September 12. Apple stock historically moves up going into the launch and sells off after the launch. Since Apple is the biggest stock and has heavy weight in indexes, it has a disproportionate impact.
    • The new economic data points are weak.
  • Inflation is back in Europe.
    • In Spain, CPI came at 0.5% month-over-month vs. 0.4% consensus.
    • In Germany, flash CPI came at 0.3% month-over-month vs. 0.3% consensus. Inflation accelerated in four German states.
  • 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), and NVIDIA Corp (NASDAQ: NVDA).

In the early trade, money flows are negative in Tesla Inc (NASDAQ: TSLA).

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 buying stocks in the early trade. Smart money is

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