Hot Producer Price Index Due to hot Producer Price Index (PPI) on the heels of hot Consumer Price Index (CPI), cash and hedges are being increased in our protection band.
Please click here for an enlarged chart of Direxion Daily Semiconductor Bull 3X ETF (NYSE:SOXL)
Note the following: – The chart shows that from the March 30 low, SOXL had gained 366% at its peak on Monday. – The chart shows that yesterday there was a pullback in SOXL, but the pullback was aggressively bought. – The chart shows an early move up in SOXL. The move was triggered by the news of NVIDIA Corp’s (NASDAQ:NVDA) CEO Jensen Huang going to China. Initially, Huang was not going to China with President Trump.
President Trump called to invite Huang when he learned from the media that Huang was not coming. Huang met Air Force One in Alaska where it was refueling. As soon as the news broke, investors started piling in stock futures and semiconductor stocks in overnight trading. – In our analysis, investors are believing that the inclusion of Huang in the trip to China indicates President Trump is inclined to approve the sale of more AI chips to China. – Selling is coming into SOXL after release of PPI data. – PPI came much hotter than expected.