Invesco QQQ Trust Series 1 QQQ

The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQ100 Index. To maintain the correspondence between the composition and weights of the securities in the trust (the securities) and the stocks in the NASDAQ-100 Index, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.

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Invesco QQQ Trust Series 1 > Technical Conditions Deteriorate; Growing Worries About CPI

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Comment by jcw604on Jun 10, 2022 9:22am

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Post# 34746623

RE:Technical Conditions Deteriorate; Growing Worries About CPI

Thanks for the advice.

yanster2419 wrote: https://realmoney.thestreet.com/investing/stocks/technical-conditions-deteriorate-amid-growing-worries-about-a-hot-cpi-report-16024478

Technical Conditions Deteriorate Amid Growing Worries About a Hot CPI Report

The breakdown on Thursday undermined the positive advantage the bulls have been slowly building and put the market back under pressure.

By JAMES "REV SHARK" DEPORRE

June 10, 2022 | 07:30 AM EDT

Stocks suffered a beating on Thursday as the indexes broke down out of a two-week period of consolidation. Worries about inflation took a toll again, and many traders were trying to lighten up in front of what they fear will be a very hot Consumer Price Index number for May.

The CPI report is due at 8.30 am ET here on Friday. There has been hope that it is hitting a peak, but with bond yields rising seven of the last nine sessions, gas prices up nearly 9% in the last month, rents now over $2,000 per month and food inflation near 10%, there is little hope the inflation situation is going to cool anytime soon.

The macro narrative has been one of the worst in many years, but for the last couple weeks stocks have been consolidating and building good support. I have noted numerous times how the number of stocks hitting new 12-month lows has been very limited after peaking at around 3,000, but we will need to watch closely to see if the numbers start to expand.

One bright spot is that the market is obviously quite concerned about the CPI report today and may have already discounted a miss with the aggressive selling that occurred on Thursday. Too many traders have hoped for a "buy the bad news" reaction to a hot number and they lost their confidence as they contemplated the reality of what is happening out there with energy, food and the supply chain.

From a technical standpoint, the breakdown on Thursday undermined the positive advantage the bulls have been slowly building and put the market back under pressure. All the recent consolidation is now overhead resistance, and the more pressing issue is whether the May lows will now be tested. That is why I am stressing that we need to watch the level of new lows. Probably the best thing that could happen is that new lows do not build to a great extent as the indexes correct further and hit a technical bear market.

Market conditions are terrible right now, and if you are trading, then it better be very short term. There are many longer-term opportunities developing, but there is no reason to rush in to buy as the bear market is still evolving and is showing no signs as yet of a major recovery. The most important thing you can do right now is stay patient and wait for better price action.