It’s what you might call a “rip your face off rally”. Short traders are caught on the wrong side and scramble to cover… that’s what happened today as CPI came in slightly lower than expected. But is it reason to be jubilant? Hardly.
"Inflation"
Inflation: How Hot is ‘Too Hot’?
CPI for October is likely to come in hot… expect a high 7-handle. But how much is too hot? Anything north of 8% cements another 75 bps; however something closer to 7.7% may give some hope the Fed can tap the brakes.
Fed Aftermath
Apple, Amazon, Microsoft and Google have all been crushed post earnings. Apple is the ‘best’ performer – down approx 13% the past two weeks. What’s next for large cap tech? I see more downside… and this post explains why.
Powell: ‘A Long Way to Go’
No pause. No pivot. It’s enough to make “doves cry”. However, Fed said there will be a time when they will slow down rate hikes. But we’re not there yet… expect rates to be higher than previously expected.
For a full list of posts from 2017…