To gain an edge, this is what you need to know today.
PCE
Please click here for an enlarged chart of SPDR S&P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
The chart shows that the stock market is attempting to break to a new high.
RSI on the chart shows that there is a technical set up for the stock market to go higher.
The chart shows that the stock market is significantly above the support zone. This indicates that buying here does not have a favorable risk reward ratio.
The chart shows low volume. This indicates a lack of conviction.
We previously shared with you that economists have become good at predicting the Fed’s favorite inflation gauge PCE. PCE data came as expected. Here are the details:
Headline PCE came at 0.0% vs. 0.0% consensus.
Core PCE came at 0.1% vs. 0.1% consensus.
The U.S. economy is 70% consumer based. For this reason, prudent investors pay attention to personal income and personal spending. Personal spending dropped. This is inline with the other data of the consumer pulling back that we have been sharing with you. Here are the details:
Personal spending came at 0.2% vs. 0.3% consensus.
Personal income came at 0.5% vs. 0.4% consensus.
First and foremost, The Arora Report is politically agnostic. The Arora Report strives to be objective and rigorously analytical to help investors. To make money in the markets, it is important for investors to separate their political views from investing. Here are the key points:
The presidential debate has thrown huge uncertainty in the American economy and U.S.’s international standing.
Prudent investors should wait for the air to clear post debate.
There will be winning and losing investments from the election.
Depending upon what happens over the coming days, changes may be made in the portfolios.
In The Arora Report analysis, if nothing changes, the Magnificent Seven stocks,other mega cap stocks, and fossil fuel energy stocks are the winners post debate; ...Full story available on Benzinga.com
Related tickers: GLD, SLV, SPY, USO, AMZN, GOOG, MSFT, NVDA, AAPL, TSLA, QQQ, META.
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