CPI maybe comes in better than expected?

    Posted by matt on 10th of Nov 2022 at 08:17 am

    this chart from Bloomber plots the CPI and the Fed Underlying Inflation in blue. The underlying inflation tends to lead as you can see, dropping hard first in 2008, then rebounding first, then starting to decline first in 2019 before CPI. Currently the underlying inflation has been dropping but CPI has not - so could we see the CPI start to follow this and dip?  maybe this time?

    https://www.bloomberg.com/opinion/articles/2022-11-07/inflation-optimism-reasons-add-up-for-cheer-ahead-of-cpi-release 

    when I saw this chart

    Posted by matt on 10th of Nov 2022 at 08:37 am

    when I saw this chart last night I had a pretty strong conviction that it would the CPI would come down this morning based on that divergence between the underlying - but man 100 points on a 1 min candle, just crazy

    Timely chart, that was fun!

    Posted by cozz101 on 10th of Nov 2022 at 08:52 am

    Timely chart, that was fun!

    if you went long before

    Posted by matt on 10th of Nov 2022 at 08:54 am

    if you went long before the CPI - take the day off

    Ha, sold half, watching for

    Posted by cozz101 on 10th of Nov 2022 at 09:28 am

    Ha, sold half, watching for a gap and go day;  hope we get one. 

    Absolutely - enjoy the beach 

    Posted by steve on 10th of Nov 2022 at 09:04 am

    Absolutely - enjoy the beach 

    Matt, I took some SPY

    Posted by DK on 10th of Nov 2022 at 09:00 am

    Matt, I took some SPY calls at the close yesterday. Now what? Is this the wave C scenario starting to unfold ? Definitely taking some chips off at the close but curious on your thoughts. 

    first off nice!! secondly, you

    Posted by matt on 10th of Nov 2022 at 09:01 am

    first off nice!! secondly, you don't have to be an all or nothing trader - you could sell 1/2 then keep 1/2 or sell 2/3 (thus locking in massive gains) and keep a 1/3 as a running in case that C scenario plays out - your choice

    Thx Matt, was going to

    Posted by DK on 10th of Nov 2022 at 09:03 am

    Thx Matt, was going to sell 2/3 and appreciate you responding man. You guys are great. 

    There is a large gap

    Posted by kobie on 10th of Nov 2022 at 08:40 am

    There is a large gap on my futures chart.....will need to get visited soon....

    I just posted that as

    Posted by fundamentalvalues on 10th of Nov 2022 at 08:45 am

    I just posted that as well. No idea on timing, I think the most pain would be caused to just keep it up somehow today or possibly longer. I'll play whatever Oz gives when it is there. 

    NICE!!!! I had a good

    Posted by matt on 10th of Nov 2022 at 08:31 am

    NICE!!!! I had a good good feeling about that which is why I posted that chart, took some MES before that but my god that quick spike came within 2 points of hitting my stop, whew

    god this stuff moves so

    Posted by matt on 10th of Nov 2022 at 08:33 am

    god this stuff moves so fast!

    That was insane, just happy

    Posted by fundamentalvalues on 10th of Nov 2022 at 08:37 am

    That was insane, just happy it worked out. Great call on that inflation chart. I went long yesterday at the close as I doubted a straight move down after so much of the same has been discussed inflaiton wise over and over. Perfect trap. Nasty market. 

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