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Buyers Coming In Please click here for a chart of Invesco QQQ Trust Series 1 (NASDAQ: QQQ).
Note the following:
- The chart shows that the last time QQQ bounced from the mini support zone, the high fell short of the low band of the top resistance zone. This is a negative.
- Now, QQQ is back to the top band of the mini support zone.
- RSI on the chart shows QQQ is oversold. Oversold markets tend to bounce and this is exactly what is happening in the early trade.
- Today is the last day for most of the window dressing. This is bringing buyers into the stock market. For more details, please see prior Capsules.
- Yesterday, the selling was due to rising yields. This morning, yields are pulling back slightly. This is lifting the sentiment.
- In a rare piece of good data from China, Chinese industrial profits came at 17.2% year-over-year vs. a drop of 6.7% in the prior month. Stocks in Hong Kong jumped 0.8%.
- China is also injecting liquidity into the market, adding to the positive sentiment.
- The positive sentiment from China is carrying over to the rest of the globe.
- Investors are keeping a close eye on the potential shut down of the U.S. government.
- Durable orders are remaining strong. However, this is a very volatile series in the first place.
- Durable orders came at 0.2% vs. -0.2% consensus.
- Durable goods ex-transportation came at 0.4 vs. 0.3% consensus.
- Big semiconductor memory maker Micron Technology Inc (NASDAQ: MU) will report earnings after the market close. The earnings and commentary will have read through for other tech stocks. In full disclosure, there is a Micron position in ZYX Buy in the portfolio that surrounds the Core Model Portfolio.
- 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).
In the early trade, money flows are positive 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