Well, the CPI numbers finally came out, and it’s just what the bulls ordered: nice and chilly:
We can see here, over the course of two years, inflation swelling up and dying down.
The instant the news came out, VIX plunged down to levels which are just plain sad.
Yep, not exactly the kind of outcome I would have liked, but that’s why I was keeping my risk level fairly light. Let’s see how things look half an hour into the normal trading day, although it seems like the bulls have been handed yet another gift from the government data gods (since having inflation one-tenth of one percent lower than expected solves all our troubles).
