Stocks ended a choppy session lower on Monday as investors contemplated the macroeconomic outlook. Inflation may have already peaked. However, according to the Federal Reserve Governor Christopher Waller, the central bank could slow the pace of its rate hikes, but the endpoint remains long distance away and depends on inflation data.
Overall, S&P 500 declined 0.9% to 3,957, while NASDAQ fell 1.1% to 11,196.
Tweet of the Day
By December of next year, Morgan Stanley sees:
1. Annual #CPI BELOW Fed 2% target
2. Outright deflation in core goods
3. FOMC beginning rate cuts pic.twitter.com/ASzYz7HSbu— Carl Quintanilla (@carlquintanilla) November 14, 2022
Chart of the Day
Our chart of the day is the ten-year chart of Atlassian Corporation (TEAM) in 2021 Q3.
Atlassian is a global software company which builds software tools to help different groups of people collaborate, build, and create projects together, especially with the software’s bug-tracking tools. It is a quality company.
This is a classic parabolic move higher. And a sell signal in retrospect.
This chart was done on September 27, 2021 when the shares were $398. Atlassian went in to peak at $483 a month later.
Earlier this month, TEAM fell from $171 to $135, the day after the company reported earnings, and lowered next qtrs revenue guidance.
Now, the shares are $135.
– David Sharek, Founder of The School of Hard Stocks
TEAM is part of the Aggressive Growth Portfolio.
