Good morning traders,
Tons of data just dropped this morning
PCE Inflation (Fed’s favorite inflation measure)
PCE YoY: 3.7% vs 3.6% expected (slightly hotter)
PCE MoM: 0.2% vs 0.1% expected
Core PCE YoY: 3.3% vs 3.3% expected (in line)
Core PCE MoM: 0.2% vs 0.2% expected (in line)
The Fed is unlikely to view this as an inflation reacceleration. Net result is neutral to slightly positive.
Here is what I'm thinking short term -
Risk-On Sectors:
Bullish
Technology
Industrials
Financials
Consumer Discretionary
Reason: Growth is holding up, consumers are healthy, and Core PCE did not surprise to the upside.
Defensive Sectors:
Likely Mixed
Utilities
Staples
Healthcare
Investors may rotate toward cyclicals if the market embraces the “soft landing” interpretation.
Open Positions:
AMD - LONG - this position is doing great.
ARM - SHORT - Doing great. We’ll take some off today and leave some risk free runners.
DKNG - LONG - B/E - likely going to cut this one as its not moving
GOOG - SHORT - Risk free runners are doing well
HOOD - LEAPS - UP BIG