what the ugly CPI means for markets...

January 11, 2024

Morning traders.

We had ourselves one hell of a Thursday session with the ugly CPI print.

We’ve got PPI on Friday so let’s digest what all of this indicates for markets moving forward this week/month.

Let’s jump in!👇

Impact Snapshot

  • Inflation Data comes in hotter than projected

  • U.S. jobless claims drop to lowest level since October

  • PPI Inflation - Friday

Market Evaluation

US open saw a volatile session, with stocks down and bonds struggling for direction after hotter-than-anticipated inflation data tempered bets on a Federal Reserve rate cut in March.

The labor market remains healthy.

That keeps consumers spending and supports economic growth, albeit at a slower pace than last fall.

US inflation accelerated at the close of 2023, challenging market expectations that the Federal Reserve will soon start lowering intensest rates.

Tomorrow all eyes on PPI inflation and some key bank earnings early in the morning.

Markets Breakdown

Can you imagine what the market would be like if it was actually doing what the majority thinks it will do?

When a market is too short, it strengthens the market.

Likewise, if a market is being too long, it weakens that market.

It is hard to dispute this being a fact unless you truly understand the message behind it.

This morning, everyone was expecting 4840 and a higher high above. 

“We are just 2 points bellow it, surely we will print higher highs” MrTrader said before smashing the market buy to “buy the dip”.

This mindset is the foundation of the short term trader, that is looking at such pivots and expect for the market to continue until that exact level. 

What that leads to is liquidations.

Knowing when the trend has changed is probably the biggest opportunities you’ll ever take.

Ultimate TradingView Suite

By using the information from our morning brief report Here, our Q_Pro indicators and our BRAND NEW Ultimate TradingView Suite we were able to catch this beautiful trade on another textbook sentiment passed thru our message.

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The targets we look for until NY close & Targets to pay attention Tomorrow:

  • Upside Levels: 4808/4842/4876

  • Downside Levels: 4760/4743/4721

Alright that’s all we have for you today.

Want our ALL-NEW Ultimate TradingView Suite? Grab it right here!👇

We’ll see you on Sunday!

Cheers.

-The QuantVue Team