TSLA - Small Caps Breakout 85% Probability Of A Rate Cut In September | Benzinga
To gain an edge, this is what you need to know today.
Small Caps Breakout
Please click here for an enlarged chart of iShares Russell 2000 ETF (ARCA: IWM).
Note the following:
- The chart shows that small caps have broken out.
- The trigger for the breakout is the anticipation of rate cuts.
- The chart shows the breakout is on higher volume. This indicates conviction.
- RSI on the chart shows that in the short term small caps are overbought. The pattern shows that a pullback will likely be a buying opportunity.
- The chart shows the 2021 high in small caps. This level will be a magnet for traders.
- As full disclosure, Small cap ETF IWM is in The Arora Report's ZYX Allocation Model Portfolio.
- In The Arora Report analysis, now there is 85% probability of a rate cut in September. There is a 35% probability of a rate cut in July.
- Investors should keep in mind two important points about Trump’s VP pick JD Vance.
- He is apparently a crypto bull.
- He is a China hawk. He said that China is the "biggest threat.”
- Trump’s pick of JD Vance could mean rollback of climate regulations, more steps against China, and crypto friendly regulations.
- Among notable earnings, Morgan Stanley (NYSE: MS) and Bank of America Corp (NYSE: BAC). MS reported better than consensus but worse than whisper numbers. BAC reported better than consensus and whisper numbers. As full disclosure, BAC is in The Arora Report's ZYX Buy Model Portfolio.
Magnificent Seven Money Flows
In the early trade, money flows are positive in Apple Inc (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), ...