March 12, 2025

Markets:

Stock futures rose on Wednesday as investors awaited new U.S. inflation data, while President Donald Trump’s 25% tariffs on steel and aluminum imports to the U.S. took effect.

The consumer price index reading for February is due at 8:30 a.m. ET. Economists polled by Dow Jones expect the CPI rose 0.3% last month and they anticipate headline inflation grew 2.9% from 12 months earlier.

The results could inform the Federal Reserve’s next policy steps at a time when the market’s worries about inflation and slowing growth are starting to reignite.

This week alone, the Dow and S&P 500 have dropped more than 3%, while the Nasdaq has fallen 4%. The S&P 500 briefly dipped into correction territory on Tuesday, down 10% from a record set in February. Over the past month, the S&P 500 has lost nearly 8%, while the Dow and Nasdaq have shed 6.6% and 11.3%, respectively.

The bulk of those declines have been led by major tech names, which have been struggling of late. Tesla is down 17% this week alone, while Nvidia and Meta Platforms are down more than 7% each.

Some of those names rebounded slightly Wednesday in the premarket. Tesla rose 3%, while Nvidia gained 2%. Meta Platforms, Amazon and Alphabet also climbed more than 1%.

Portfolio:

CPI just boomed premarket and dare we say the price activity we noted overnight two sessions ago was the bottom?  Now we proceed and the real opportunity begins.  We do have monster opportunity that has been created and interested in seeing how this trades into FOMC next week.  

We enter todays session holding setups in PLTU and TSLL only.  We are ready to attack.  Why do we feel comfortable stating this?  It's all about price activity and how we reacted yesterday and why we remained patient and pointed to how important the price action would be.  Pretty good action yesterday. Both SPY and QQQ made new intraday lows while at the same time VIX made no new highs. This was important! Market didn't get panicky or fast on the LOD cut like we've witnessed the past few days.  We have a different mind set and price activity now taking place.  This is exactly how a bottom is printed and now we move.  Notice 550 was defended with strength and front runned on SPY.  

Be ready today.