On rare occasions, I’ll actually think of something smart and insightful to say, and I stumbled upon one of those instances during my tastylive broadcast. In mentioning that the PPI numbers would be out soon, I off-handedly remarked that even though the CPI numbers showed no inflation, perhaps the PPI numbers would come in hot since they are further up on the supply chain and might be affected by the tariffs first. It was just a throwaway line, but lo and behold, the numbers just came out and the PPI is almost FIVE TIMES the anticipated value. How’s 10.8% inflation sound, everybody?
As such, the reaction from the /RTY small caps was instantaneous.
The /NQ likewise fell.
This all looks quite dramatic, but as I’m typing these words, the /NQ is down 0.4% and the /RTY is down about three times that much. The point being that, yeah, it’s down, and that’s great, but giving the shocking nature of this number, this seems a muted reaction.
I would also mention that I re-entered my China (FXI) short yesterday, and that seems to be heading the right direction. I’m presently medium-heavy with my risk profile at a 111% commitment of funds.
I would also mention that a “asset toppy” sign to me was this wisecrack from the President’s son, pissing on some woman’s face who challenged his Ethereum bullishness. Eric is a pretty dull knife, but it’s also kind of a dick move on his part. The simple fact is that when you’ve got an administration which is blatantly changing the nation’s direction in order to support the family’s own crypto investments, it isn’t exactly genius-level investing to go long whatever they are supporting.
In any case, it’s a welcome shift to see some red for a change. Let’s hope it sticks, since this PPI report is nothing to ignore!
