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- Stock Market Did Not Like PPI
Stock Market Did Not Like PPI
Initial Pop After PPI Release Was Sold
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What's Inside...
Today, we will focus on Nvidia and the Semiconductor Sector.
PPI numbers were weaker than expected:
PPI -0.1% MoM, Exp. 0.3%
PPI Core -0.1% MoM, Exp. 0.3%
PPI 2.6% YoY, Exp. 3.3%
PPI Core 2.8% YoY, Exp. 3.5%
There was a huge Jobs Surprise on Friday: U.S. AUGUST NONFARM PAYROLLS RISE BY 22,000; EST. 75,000; PREV. 79,000. Plus, huge revisions of last year's job reports.

Weak jobs and weaker inflation may trigger some stagflation thinking among investors. I have no strong opinion about stagflation, though.
Nvidia (NVDA)
Did Nvidia (NVDA) peak?
The drop from the late July high looks like a nice (a)-(b)-(c) down, suggesting another high to come.
There is a smaller probability that what looks like an (a)-(b)-(c) down is a developing leading diagonal (down), but it is too early to speculate on that.

Shorter-term cycles, from 15 to 88 trading days, suggest an upside bias into December.

The three strongest and longest cycles detected on the daily chart have peaked.

We will look at the semiconductor index in the Pro newsletter.
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The chart below is yet another view of the weakening internals of the broader stock market.
Note: This chart should not be construed as a short-term sell indicator. It signifies less participation by stocks in the late advance from the April low.


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