U.S. Inflation to Remain a Pain in Granny Retail’s Side

U.S. Inflation to Remain a Pain in Granny Retail’s Side
Written by Keith Schneider (on behalf of Michele ‘Mish’ Schneider) and Wade Dawson

Granny Retail, SPDR S&P Retail ETF (XRT), displays Leadership with our Triple Play indicator and the Real Motion indicator.
The retail sector soared after the CPI report last week, as represented above by Granny Retail, the lead shopper of Mish’s Modern Family, SPDR S&P Retail ETF (XRT).
The latest Consumer Price Index (CPI) reading came in at 7.7% versus 7.9% showing 0.20% less than expected, and markets celebrated.
After rebounding off support levels at the 50-day moving average, Granny XRT gapped higher. XRT has continued to rise and may see further resistance at the 200-day moving average.
Several retailers, beginning with Walmart, report earnings this week, and retail sales figures will be revealed on Wednesday. This data will be pivotal for Granny Retail’s price trajectory.
Granny Retail XRT currently displays market leadership with our Triple Play indicator, and our Real Motion indicator demonstrates strong momentum trend strength.
The current XRT rally can always retrace, so paying attention to our proprietary indicators will signal if Granny might reverse course. What is expected to happen this week to retail and beyond in 2023?

CPI inflation was softer than expectations at 7.7% versus 7.9% but rose 0.4% for October.
Unfortunately, there isn’t a simple answer.
If you think inflation is fully addressed or peaking because CPI came in 0.20% less, you could be in for an inflation shock.
The October print rose the same as in September shown above. The positive market reaction doesn’t mean we are in a new bull market.
Walmart will report before the opening on Tuesday.
Key points to watch for include guidance on inventory levels and transportation costs headwinds, as well as updates on pricing and Walmart+ subscriber growth.
Households are feeling the pinch from inflation, and this trend will likely continue into 2023.
The retail sector is in for a challenging quarter and year ahead, as global inflation, loss of purchasing power, and weak consumer sentiment continue to weigh on retail.
We will keep a close eye on Granny Retail as an early indication of the holiday season and the economy’s overall health.
As a trader, it is critical to safeguard your profits. Mish’s risk management trading service can help you navigate unpredictable markets and minimize trading losses.
Rob Quinn, our Chief Strategy Consultant, can provide pricing and software compatibility for our trading indicators and offer a complimentary one-on-one trading consult. Click here to learn more about Mish’s Premium trading service.
Get your copy of “Plant Your Money Tree: A Guide to Growing Your Wealth”
Grow Your Wealth Today and Plant Your Money Tree!

“I grew my money tree and so can you!”- Mish Schneider
Mish in the Media
CMC Markets 11-09-22What’s next for key sectors after US midterms?
Business First AM 11-08-22Why We Love the Metals
UBS Trending 11-04-22Inflation and Fed Outlook 2023
Charles Payne 11-04-22Fox Business, Oil Markets Roil Fed
Cheddar News 11-03-22Fed Hawks Turn Markets Blue
Cavuto Coast to Coast 11-03-22Fox Business, The Fed’s Dilemma
ETF Summary
S&P 500 (SPY) 393 support and 398 resistance
Russell 2000 (IWM) 182 support and 187 resistance
Dow (DIA) 333 support and 339 resistance
Nasdaq (QQQ) 283 support and 289 resistance
KRE (Regional Banks) 62 support and 67 resistance
SMH (Semiconductors) 215 support and 224 resistance
IYT (Transportation) 225 support and 233 resistance
IBB (Biotechnology) 132 support and 136 resistance
XRT (Retail) 62 support and 67 resistance
20221115