Stocks are moving sharply lower on the heels of the latest Consumer Price Index inflation report, which came in above expectations.
The important numbers are year over year, which came in at 3.0% vs. a consensus of 2.9%, and YoY excluding food and energy, which came in at 3.3% vs. a consensus of 3.1%.
This tells us that inflation is worse than it was a year ago…
Which again tells us that the Fed should never have lowered rates in the first place, and it could push back future rate cuts while Trump is again calling for lower rates immediately, according to reports this morning.
Folks, this is bad, bad news. All of the Fed’s efforts over the past year have led nowhere.
The bond market (TLT), meanwhile, is still not in a good place, and it’s breaking down again on this morning’s CPI print.
Across the markets, almost everything is getting tighter and consolidating, which means it’s time to be very careful…
I believe that China stocks are due for a pullback — it’s only a matter of time before we hear some bad news out of Beijing, and we also have a full slate of earnings on deck…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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