Hot CPI, it has led to dramatic rate cut timing expectations adjustment

S&P 500 didn‘t make even a little headfake on CPI as the figure was indeed too hot, 0.4% mom – ushering the long awaited correction. The magnitude of the surprise (really? It was so easy to see, and I made my macro estimates public well ahead of time, and freely) made for great intraday and new swing opportunities in stocks, further enhanced today. Part and parcel is of course navigating precious metals and oil in the premium Telegram channel.

Today‘s analysis (and at least tomorrow‘s too) will be a bit shorter than usual, because I‘m working on an extensive article for both clients and free readers that I‘ll finish latest during next week. Timeless piece just like the money and open trade management style of mine that I highly recommend even free readers read.

Back to CPI, it has led to dramatic rate cut timing expectations adjustment, and this is what I presented to our intraday clients in the channel regarding PPI already.

Let‘s move right into the charts – today‘s full scale article contains 2 more of them, with commentaries.

S&P 500 and Nasdaq

5,235 was cut through like a hot knife through butter, and the 5,220s then provided a fine (intraday) shorting opportunity. Very weak session finish was followed by dead cat bounce overnight, and prices are again very slowly approaching yesterday‘s intraday lows.

The best way to play this interest rate readjustment called Sat as imminent, has been in Russell 2000, even intraday today.