Pristine Market Analysis & Watchlist 5/10

Make or Break

Team,

We didn’t get the closure we were looking for after today’s CPI print, but we have a game plan ready to go for tomorrow! Make sure you check out the Auction Analysis Section tonight!

-Andrew

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Economic Data

CPI data came out largely in-line with a +.4% increase MoM. A +.4% MoM increase equates to a +4.9% YoY inflation rate, which is still well above the fed’s inflation target. The economists nailed the expectations this time around.

Treasury Action

Fed Fund Futures

Fed fund futures remain rangebound, and are still pricing in two rate cuts into year end.

10Yr

10yr Treasury futures reacted positively, and bounced at support post-CPI.

ZN_F 10yr Treasury Futures

May Index Performance

The Nasdaq QQQ flipped into positive territory for the month!

Equity Dashboard

After a few fits and starts throughout the session, all indices finished in positive territory aside from the dogs of the DOW! With this said, market breadth was weak, with only 48.1% advancers on the day.

Megacaps did most of the heavy lifting.

Index Price Action

Today’s action was a bit perplexing when viewed only through the lens of the S&P 500, so I am including all of the indices side-by-side tonight for context. The S&P 500 and Dow Jones remain stuck in the mud, but we’ve seen a a sharp 10% move in the ARKK innovation ETF over the past 5 trading sessions. Have you noticed that the stock jockeys are getting louder on Twitter? This is why.

Mark Minervini, one of the traders on my Mount Rushmore, often says to look for the action of individual stocks rather than always relying on indices. That lesson has been on full display the past few days as the indices waffled, while beaten down small caps rallied significantly.

In the following sections of tonight’s update, I’ll cover my research in preparation for tomorrow’s trading session

✅ Trend Model Update - Our proprietary indicator that informs us on how aggressive/defensive to position in the market

✅Market Strategy - My trading plan

✅ Today’s Trade Blotter and Position Update

✅Daily Watchlist - We scan thousands of stocks and hand-pick the best reward/risk opportunities