The only economic data of the week has tumbled out, and both data points are lower than expected. The first, the Core PCE inflation data, wants you to believe that prices are moving up at an annualized rate of 2.4% a year, in spite of all the evidence. Who are you going to believe, though? A government with every good reason to want to state inflation has been beaten, or you own lying eyes?
Truthful or untruthful, the market is gobbling up this news, with weak equity futures largely reversing back into the green and bonds zipping higher off overnight weakness.
The other data point was for the GDP, and our “hot as hell” nation is clocking in at a growth rate of 1.6%, weaker than the already-modest projection.
It’s the inflation data that seems to be the focus, however. The NASDAQ came close to breaking support last night (green line) but failed to do so, and as of this composition has erased a triple-digit loss and is modestly higher.
Crude oil, bored to death that the endless “the sheriff is near!” peace deal that always seems to be close but not quite done, is flopping around at about $90, more or less.
The one and only high-five I have this morning is with Bitcoin, my biggest short position, whose futures are down $1500 and continues to skid its way nicely lower.
It looks like another potentially ho-hum day ahead. Here we go!
