We have some random, but positive action as investors position in front of important economic news. The producer price index report lands Friday and then the consumer price index report arrives on Tuesday. The Fed interest rate decision and a press conference with chair Jerome Powell will hit the market on Wednesday.
The mood has grown increasingly bearish this week as the focus has shifted from consumer inflation to strong employment and growing worries about a recession. Strategists have been negative about what will happen in 2023, and the market has lost its excitement about peak inflation and a slightly less hawkish Fed.
There is potential for a favorable reaction to the PPI, CPI, and the Fed, and with the market giving back all the gains created by Powell's last speech, the technical setup is favorable, but there is a risk of hot numbers again, which would cause a brutal response.
If the market can navigate these events, then we will have good conditions into the end of the year. Positive seasonality could still come into play. Seasonality is a tendency and not a certainty, but if the market can navigate some of the macro news, it could be self-fulfilling to some extent.
I've been doing some day trading of indexes and ETFs this morning while keeping in mind that PPI is tomorrow morning.
I see little I want to trade right now, but I see some charts I like in biotechnology, such as Actinium Pharmaceuticals Inc (ATNM) and TG Therapeutics Inc common stock (TGTX) , and a few others. This is not a market for building big positions right now, and I will continue to maintain very high cash levels. After the Fed is out of the way next Wednesday, we will be in better shape to build some trades for the last few weeks of the year.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these stocks to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)
