Watching tech post-CPI, still cautious on $QQQ dips
The CPI print this morning, while not a massive shock, certainly put some pressure on the tech side, and we're seeing $QQQ at 706.52, down over 1.3%. The market's reaction, especially with $ES barely holding onto gains at 7354.02, suggests that the "higher for longer" narrative for rates isn't quite dissipating. I'm still maintaining a cautious stance on accumulating dips in high-growth tech until we get a clearer signal that inflation is definitively on a downward trend, or at least that the Fed's tone is softening. Value and dividend plays still seem more appealing in this environment, but I'll be keeping a close eye on the $QQQ 702.81 low from today; a decisive break below that would be concerning.
I'm seeing similar price action. It's difficult to justify aggressive long plays in growth with the current rate environment, especially if we get further hawkish commentary later this week. Are you looking at any specific levels for QQQ that would change your cautious stance?