Inflation Numbers Making the Case the Fed may be Clear to Cut Rates

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With excessive heat rising across various parts of the country it is nice to at least see Inflation showing signs of cooling off.

The Consumer Price Index (CPI), which is a measure of the average change over time of prices paid by consumers for certain goods and services.

The monthly inflation rate dipped in June for the first time in more than four years. CPI declined 0.1% from May. This shows the 12-month rate at 3%, which is around its lowest level in more than three years.

Take a look at Treasury yields, which decline when bond prices rise. They fell sharply, indicating investors are thinking the data would or could increase the chances that the Federal Reserve cuts interest rates soon; likely in September.

The follow up report to the CPI, the PPI, which is the report on the prices suppliers/producers receive  for their goods and services is due out tomorrow morning.

The markets so far, except for tech stocks, are responding favorably to the data with the Dow up 0.16% at the time of this writing, (the NASDAQ is off 1.61%).

Markets in Focus: Invesco QQQ Trust (QQQ) – Tracks the NASDAQ 100 Stocks

The reason this sell-off occurred for most of the day if not all of it, was the sector rotation out of big tech and in to small cap stocks.

This may be a one-day sell off, of which money may come back in to tech as long-time investors in these high flyers comes back with prices of these securities being deemed on sale.

Then again, it may not be a one-day occurrence and more and more profit taking may come in to play.

Remember we are coming up on another round of earnings reports for Q2 and if the numbers come in better than expected for some of these companies that could drive people right back into buying these.

Fibonacci levels on the chart above show possible support levels based on it.

Tools and Observations

Creating a Custom List in Toms Tools

There are a number of Pre Computed lists in toms tools that subscribers can use in the technical analysis.

If you want to searhc the stocks that comprise the Dow Jone Industrial Average or look up how stocks in the S&P 500 are perfroming.

Say you want to look up which stocks in those sectors or ETF’s are outperforming others in its sector/ETF or you want to see which are at support or resistance.

You can run a variety of scans on these lists as often as you like.

But, what if you want to creat your own list of securities.  Maybe you have a basket of stocks that have been your facorites for a long time and you want to do a specialized scan from the tools on those.

You can create it.

Go to Wesbiste > Lists.

You will end up on this page:

To the right you will see a Controls Section as shown by the following image:

When you click on the dropdown arrow for the Precomputed Symbols an array of lists will populate that you can then select a list from those choices to run a scan on.

When you click on the Sekected Stock List you may see the first three line item choices:

• Penny Stock List
• Penny and Weekly
• Penny Plus Weekly Stock List

The distiction of the three are is as follows:

Penny Stock List = Securities who are on the Penny Pilot list meaning they likely have options with penny-wide increments.

Penny Plus Weekly Stock List = Securities that may be in either list, the penny-wide list and Securities that have Weekly Options.

Penny Plus Weekly Stock List = Securities that are in both lists, the Penny-wide and Weekly options.

How to Import a List from Outside of the Tools

Let’s say you want to look at a batch of stocks in the tech sector.  With the inflation data out today – the CPI coming in at the lowest reading in three years – it has caused a rotation of stocks where tech is selling off and small-cap stocks, financials and hoising related stocks.

If you want to look at the tech sector (or any for that matter) I look at the Sector SPDR ETF’s and those 11 S&P Sector ETF’s can be foind at www.sectorspdr.com.

Once at that site one can click on the sector they want to get a list of components for.

I’ll click on the XLY which is the technology ETF.

Then I click on the hyperlink for Holdings

I then click on either of the spreadsheeet choices (either one will work for our purposes).

Then a spreadsheet opens up.

Simply Copy and Paste the list of symbols (if you get any other data in your copy process that is fine as the tools corrects for all that as you will see in a bit).

Copy all these and then go to the tools

Once in the tools go to Website > Lists > Edit Lists

Click on the dropdown arrow for the window ‘Selected Stock List’

Then click on a ‘List#’ (I selected List 12)

The next thing to do is Paste the list of symbol in the Box under Edit Symbols.

Left click Save button and it will refresh with the list of stock symbols in the box and the Stock Names box will have the symbols and company name.

Note how anyextrad dialogue, text or info will be eliminated and all that remains is the stock symbols.

To rename the list type in the Edit List Name  however you want to name it and left click Save.

You can now find this lists in your dropdown windos on most all other scan pages that give you a choice to select a list to scan on.

Enjoy!

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