9/10 Daily Plan: Thoughts on tonight's Presidential Debate + Tomorrow's CPI Data
Good Morning Folks -
I am sending out my Daily Plans early because I believe we are in a pivotal period in the market. If this recovery sequence that I’ve been mentioning continues to have staying power, this will mark the beginning of a Higher-Low formation in both the S&P 500 and the Nasdaq-100.
My opinion is that Bulls need to reclaim as much lost ground as possible from last week’s decline ahead of the September FOMC. That way, there is a “buffer” to withstand a negative shocker from FOMC and still keep the emerging Higher-Low structure alive.
Today’s economic calendar is light, which is a net-positive for this session’s intraday context since the market has been jittery almost every data release from the past several weeks.
From a market psychology standpoint, the Market Algorithm is most likely focused on the following upcoming issues.
Tonight’s Presidential Debate between Harris and Trump
Wednesday’s CPI Data (and then PPI on Thurs).
I’ll briefly share my thoughts on each bullet point.
On Harris vs. Trump
This debate is important because the two candidates are essentially tied in their run-up to election day. Tonight’s performance can begin to shift the momentum towards the debate winner.
I believe the Street is particularly interested in understanding Harris’ views on China foreign policy if she wins the election. So far, she has not really expressed her stance on China. To me, she is likely to be more dovish than Trump on China. Implications are below.