NASDAQ 100 Hit Record High Amid Gasoline Boosts CPI

By: Eddy Peng Oct 16, 2017
U.S. stock market edged higher last Friday, with NASDAQ 100 gaining nearly 0.46 percent or 27.6 points to the record high, after U.S. consumer prices recorded their biggest increase of 2.2 percent in eight months in September. For NASDAQ 100 on Friday, the biggest gainers of the session were Viacom B Inc (NASDAQ: VIAB), which rose 5.82 percent or 1.43 points to close at 26.00. Ulta Beauty Inc (NASDAQ: ULTA) gained 4.43 percent or 8.42 points to end at 198.58 and NetEase Inc (NASDAQ: NTES) was up 2.90 percent or 7.89 points to 279.65 in late trade. However, The biggest losers included JB Hunt Transport Services Inc (NASDAQ: JBHT), lost 4.01 percent or 4.34 points to end at 104.01, while Walgreens Boots Alliance Inc (NASDAQ:WBA) declined 2.09 percent or 1.44 points to 67.56 and Activision Blizzard Inc (NASDAQ: ATVI) shed 1.56 percent or 0.97 points to close at 61.08. The Labor Department said on Friday that its Consumer Price Index gained 0.5 percent last month, the biggest since January, after advancing 0.4 percent in August, mainly driven by gasoline price’s soar in the wake of hurricane-related production disruptions at oil refineries in the Gulf Coast area, but underlying inflation remained muted. Although the CPI seemed to be high pushed by gasoline, price pressure were benign, shown by core CPI’s reading at 1.7 percent in September, excluding the volatile food and energy components. It gained 0.1 percent correspondent with a slow increase in rental accommodation, and the declining cost of new motor vehicles and the medical care index. The persistent modest readings in the core CPI are likely to worry Federal Reserve officials who have been engaged in a vigorous debate on the inflation path. But Fed Chair Janet Yellen has said that temporary factors such as one-off price cuts by wireless telephone companies are holding back inflation. Technically NASDAQ 100 index is rising to 6101.7 as of 12:15 p.m. in Sydney. For the long term, it has still been in the developing ascending price channel, started from as early as February this year, currently with a high reading of CCI(14) (Commodity Channel Index) at 101.3003 and a show of potential overbought, revealed by retreat of CCI from over 100, which can indicate some potential risk of retreating later. ACY-NAS100-Daily-161017 NASDAQ 100 Hit Record High Amid Gasoline Boosts CPI

Chart 1: NAS100 Daily

If we look at the shorter outlook of the index, the 30-minute chart for example, we can find  that the CCI also is decreasing from over 100. In this case, investors may look for short position on the index. ACY-NAS100-M30-161017 NASDAQ 100 Hit Record High Amid Gasoline Boosts CPI

Chart 2: NAS100 M30

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