DailyPlay Update – January 12, 2023

Stocks continued their recent rally on Tuesday with gains of 1.76% in the NDX; 1.3% in the SPX; and 0.75% in the Dow, as investors reverse last year’s weakness in direct opposite magnitude of what was beaten down the most. The SPX marked a qualified and confirmed upside breakout of its daily bullish Propulsion Momentum level (3917) to next target 4069. (Of course, it still has to get above the downtrend line to get there.) With today being the much looked at monthly CPI figure, be prepared for any and everything to happen by the market’s close.

SPX -Daily

We’ve recently added some new positions, including longs in the SPY and SPOT and a short in ABBV. All are working to start, but today is anyone’s guess what’s going to happen. I’m hearing some talk that the CPI will come in better than expected (thus, the rally we’ve seen the past few days) and that those who bought ahead of the number will lighten up on a rally after the number comes out. Recall, that is what happened last month, too.

No new ideas today until we see what the CPI brings us. Tomorrow financial stocks will be in play as several key earnings reports in that space come out Friday morn. In the meantime, expect some craziness today.