PCE Comes in as Expected. Bonds and Stocks Rally. Plus Two New Momentum Trades.

Stocks retain solid tone ahead of the weekend.

This morning’s PCE number came in mostly as expected, with the month to month number remaining close to flat and the year over year figure showing a slight rise in inflation.  Inside the number, consumer spending and income rose at a slower pace than previous months, again suggesting that consumers are increasingly cautious.  

Kudos to those who voted in my recent PCE prediction poll. You nailed it.  Check out the results here.

Interestingly, consumer bellwether, wholesale warehouse operator Costco (COST) delivered a slight miss on sales, while recent consumer confidence numbers have shown a lowering of expectations.

As I recently noted, the housing market is also showing some stress as existing home sale prices on homes for sales are being reduced; some at a rapid pace suggesting a bit of panic is starting to creep into the market.

The stock market liked the news and the New York Stock Exchange Advance Decline line (NYAD) made another new high despite hovering just above the overbought level with an RSI reading of 72 this morning. 

The U.S. Ten Year Note yield (TNX) also liked the PCE news as its yield is back below 3.8%.  Unless something changes, it looks as if TNX may finally be turning lower.  A move above 3.9% would be negative for stocks.

In this issue, I am offering two new Momentum Portfolio trades, plus an update on an existing Extended Stay Portfolio Trade which got great news yesterday.

Extended Stay Portfolio Pick Gets Good News. Stock Poised to Move Higher.

I recently announced the expansion of the Smart Money Passport Active Trading portfolio to include longer time frame trades.  I’m certainly very pleased with our short term trade results, as witnessed by the most recent profits of over $2700 from four successful trades closed between 9/15 and 9/23/24. 

On the other hand, short term trading isn’t for everyone.  So, if you’re looking for longer term trades this is your lucky day, as I have established the Smart Money Passport Extended Stay Portfolio. 

The trades in this portfolio will let us give our value plays time to mature.  So, while I will still be offering short term trades with explosive potential, now, as a subscriber, you have access to intermediate term trending trades (with a time frame of weeks to months) which feature less volatility and allow you more time to decide whether it makes sense for you to enter them. These trades are offered at no extra cost, as they are an integral part of the Smart Money Passport. 

Today I’m updating the good news on a recent Extended Stay pick, which is gathering steam this morning. But it’s not too late to own the stock as the breakout is still in the early stages.   So, it’s a great time for those who are waiting to hit the Paid button to grab a hold of the now expanding Smart Money Passport.

Thanks to everyone for your ongoing support.  I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters.  Special shout out to new members who now have access to the Sector Selector ETF Service, which is included, at no extra charge with your Buy Me a Coffee membership.

For active trading, short term trading strategies, check out the Smart Money Passport.

I also appreciate single coffees, which you can buy me here.

You’re the music.  I’m just the band.