The monthly inflation numbers are all out now, and the bulls are dancing in the streets. The Core CPI came in cold, just like yesterday’s Core PPI.
Thus, assets have roared higher, and unlike yesterday, in which the rally was done within moments, this one seems to have power.
I would caution folks, however, that for precisely the past month, equities have been ripping up and down in a completely wild fashion, and the baton keeps getting handed back and forth between the bulls and bears with remarkable regularity. Here is the /ES since December 16th.
This becomes even more clear when you look at the daily chart. The bulls are absolutely scoring as I’m typing these words, but this could well be little more than another brief spike higher, only to be followed by more selling.
What’s particularly surprising in the midst of all this trading and mania is that, thus far in 2025, the market has really gone positively nowhere. We’re halfway into January, and as of last night the big indexes were virtually unchanged (net change of somewhere be 0% and -1%). It’s been pretty dull!
In any case, it looks like a brutal morning for the two or three bears left, and a fantastic day for the other eight billion inhabitants of the planet. Let’s see how the day as a whole shakes out, and congratulations to the longs out there for being on the right side of this bet.
