Major averages fell more than half a percent after the open, but managed to finish near the top of their trading ranges on a slightly lower close. Volume was mixed.
Total CPI in April rose 0.2% matching estimates while core CPI, which excludes food and energy, increased 0.1% vs est +0.2%. On a year-over-year basis, total CPI is up 2.2% and core CPI has increased 1.9%. Of course, the CPI number has been manipulated to reduce the level of inflation which artificially boosts GDP while giving the Federal Reserve more breathing room with interest rates should they decide to slow the pace of rate hikes. Meanwhile, April retail sales increased 0.4% vs est 0.6%. Excluding autos, retail sales rose 0.3% vs est 0.5%. The prior month's reading was revised higher to 0.3% from 0.2%.
Focus List Review
AMZN is holding at its 10-dma where it found support yesterday on a slight volume increase. This puts it in a lower-risk entry position using the 10-dma as a selling guide.
COHR posted a buyable gap-up on Wednesday, and is holding tight as volume declines. The BGU is actionable using the 240 low, 4% lower, as a selling guide. Pullbacks closer to 240 would offer more opportunistic entries, should they occur.
FB is tracking tight sideways as volume dries up. A further pullback to the 20-dema on light volume would present your lowest-risk entry point, if you can get it.
LITE pulled back slightly yesterday, and we would like to see a 50% retracement of the move from the 50-day line over the prior five days. This would bring the stock closer to the 50 price level, which would offer a lower-risk entry point
MOMO found some volume support at its 20-dema yesterday, which puts it in a lower-risk entry position using the 20-dema as a selling guide. Keep in mind that earnings are expected on May 23rd.
NOW pulled right into the 10-dma yesterday, putting it in a lower-risk entry position.
NVDA pulled in from its intraday highs yesterday, but so far has followed through on Wednesday's BGU and base breakout. Pullbacks to the top of the base at 120.92 would offer the lowest-risk entry opportunities.
SNAP has been removed from the Focus List after yesrterday's brutal, post-earnings gap-down break.
SQ pulled back slightly yesterday as volume decline to -30% below average. Low-volume pullbacks closer to the 19.18 BGU intraday low should be used to pick up shares, in our view.
TSLA is near its prior highs, and we would watch for a low-volume test of the 20-dema as a more opportunistic entry.
TTD reported earnings yesterday after the close and is gapping higher this morning. Pre-open trade shows the stock trading above 48, well above the left side of its current cup base formation. This could set up an actionable BGU this morning if the stock can set a solid intraday low.