Positive sentiment ahead of CPI data

Wall Street rallied on Wednesday

Yesterday has been again a very positive day for the US stock market.

All three major indexes have closed in profit.

The S&P 500 closed at +1.28%, the Nasdaq ended the trading session at +1.76% and the Dow Jones closed at +0.80%.

The positive movement of the stock market has been driven by investors’ expectations regarding inflation in the US which is believed to cool down.

Unmissable events today

Today, Thursday 12 January 2023, the Labor Department releases its consumer-price index for the month of December at 13:30 pm GMT.

The CPI is one of the most important reports to understand if the monetary policy of the Federal Reserve to lower inflation is working fine.

For the month of November, the inflation was at 7.1% and for the last month of the year 2022 is forecasted to cool down to 6.5%.

If the CPI report today will show a soft or a negative monthly change in inflation, we could expect a big positive reaction in stocks.

Today, at the same time, will also be released the initial jobless claim data which is expected to be higher than the previous month.

Markets are going to be very volatile today due to the release of the above-mentioned data.

Sentiment Indicator – Fear & Greed Index

The market sentiment is at 55 in the “Neutral” mode.

The investor sentiment is getting more positive every day and is going towards “Greed” mode.



FedWatch Tool – FED rates probabilities

79.2% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 20.8% are expecting a 0.50% rate increase.

The number of investors expecting a rate increase of 0.25% is increasing on daily basis.

No other options are considered at this time.

The next FED meeting is on 1 February 2023.

Portfolio Update

I am monitoring the short positions on stocks and ETFs and I will act accordingly.

This will allow my portfolio to make a profit if the market drops.

The fundamentals remain bearish, so I am neutral at the moment, based on the current FED monetary policy.

However, I am aiming to make a profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.