Good morning, everyone. The PPI just came out, and it was twice as high as expected. So, umm, let’s review. Yesterday the CPI was expected to be 0.2% and it came in at 0.1%, a mere 0.1% difference, and the market exploded higher with the force of a Saturn V rocket. Today the PPI comes out at 0.4%, a full 0.2% (double) the expected, and as I am typing this, the market is down 0.04% on the /ES. Sigh.
It occurred to me, however, that yesterday was somewhat like the upside-down version of October 13, 2022 (one of the most horrible days of my financial life). On that morning the CPI came out, and although the reaction was at first wonderful (the market plunged), in short order everything reversed and equities hyperspaced higher (which began a nearly two year rally that we’re suffering through to this very day).
Yesterday, on the other hand, the CPI came out, the market rocked higher (green rectangle below) only to plunge shortly thereafter. Just a thought.
As a side note, gold (/GC) has just about full-circled its own move yesterday. It ripped massively higher on the CPI news and, as of now, about 70% of this gain has vanished. It’s down about $24 per ounce as I am typing these tappity tap words.
The weeks’ kind of ending with a whimper instead of a bang, but as we saw yesterday, there can be plenty of action midday. And now, your moment of Zen.
