As we approached the CPI number this morning, the bulls finally were feeling the wind at their backs. The modest bout of weakness in recent days surely would be reversed by the Fed Put. Thus the ES was zipping higher, as it has done for a dozen years…….
……..and the NQ tech stocks, even with the bad news from AAPL, was flying……
…….and even gold, which has sucked out loud for 14 solid months, was catching a bid.
And then the CPI came out. It wasn’t white hot, and at first the markets responded positively to it.
But after a couple of minutes, the ES flipped lower………….
…………and so did tech stocks………
………..and, naturally, gold, which excels at one thing and one thing only: failing.
For those interested in the topic of inflation, I might point your attention to Slope’s own SocialTrade section on this topic located here.
I suspect we’re going to see inflation heat up persistently for a long time to come. At this point, I think that before it’s all over, the nation will collectively suggest:
- Powell find an unabridged dictionary;
- He flip to the page with the word “transitory”;
- He tear the page out;
- Wrap it around a large, healthy carrot;
- Insert it into any available orifice.
