Daily Plan 9.14.23

Markets Close Higher - What’s Next?

Good evening, readers!

Another outstanding session transpired, wherein my levels for both the Emini and Nasdaq closely aligned with the day's low. The Nasdaq recorded a robust 160-handle rally, and concurrently, the Emini reported a 27-handle surge. The pivotal observation was the minimal to virtually non-existent downside below my specified levels. The details of these levels are as follows:

ES Long 4503

NQ Long 15466

Volatility in the indices remained comparatively subdued, so the intended targets were not realized. However, any upside witnessed today was fully captured.

Notably, several stocks experienced significant upward movements, aligning with the day's lows as illustrated below:

AMD, MSFT, AMZN, META, NVDA, and TSLA all showcased substantial rallies. Given the closing at peak levels in the indices, there's potential for continued upward momentum. The phenomenon I touched upon yesterday regarding the CPI indeed materialized — an initial sell-off was followed by a swift recovery post-CPI, resulting in a generally tepid upward shift. Even though the market's rally fell short of my anticipation, it was, all in all, a commendable day for our readers.

Addressing the CPI, the anticipated surge that was widely expected indeed manifested. In response, markets initially dipped but then rebounded, setting new highs.

Such a trend had been foreseen, as I frequently emphasized in my tweets. The surge in CPI is more a reflection of a prolonged consistency in the annual change; thus, even a modest increment appears considerably pronounced. This explains the swift rally observed afterwards. I've been monitoring this trend for weeks, and the recent developments validate that my expectations for today's release were spot on. The detailed results are as follows:

The eyebrows have now been raised on if the FED will further raise interest rates to a new peak which is justified. It’s in their best interest to tame inflation and see no more upticks as we have seen today. This should not be an alarm for any selling unless we see this uptick in inflation to continue back up above 4% annual change.