White House Press Secretary Karine Jean-Pierre says Wednesday’s CPI inflation data is expected to be “highly elevated." So why put this out then? Sounds like feelers were sent out to soften the blow but it was then and now it is changing yada yada yada https://therecount.com/watch/white-house-press-secretary-karine/2645883520
Because it will be elevated, but that doesn't mean it won't come in below consensus. Prices aren't that bad. At least for the things they include in the CPI. If we were gonna drop, we'd already be down more. Food has flattened out, housing too. Medical costs really haven't budged, apparel is way down, Lumber has dropped (not sure if thats included), and fuel costs are down. Granted this is backwards looking, but I think the consensus reflects things being worse than they turned out to be. I wouldn't get too bearish, you could see a nice rally tomorrow. The spring has been coiling for the last 5 sessions. We're either gonna drop like a rock, or make a run for 3950 by Friday. Either way, it'll be a swift move to a level that puts traders in limbo again with regards to direction. With so much bearish sentiment, I think the move will be up. And we were trending up nicely yesterday till she opened her mouth, that's when we reversed.
An interesting footnote, but it won't be included: But in the first week of July, home shoppers caught an unexpected break. The average 30-year fixed mortgage rate dropped to 5.3% after peaking at 5.81% in mid-June, according to Freddie Mac. Rates dropped significantly on July 7 across all mortgage terms, both fixed and adjustable: 30-year fixed: 5.3% with 0.8 point (down from 5.7% a week ago, up from 2.9% a year ago). 15-year fixed: 4.45% with 0.8 point (down from 4.83% a week ago, up from 2.2% a year ago). 5/1-year adjustable: 4.19% with 0.4 point (down from 4.5% a week ago, up from 2.52% a year ago).
The rally wasn't amazing i.e. has yet to break above 4000. And is it running out of time, failure to take out 3930. Rally has under 4 days before the start of Q2 earnings season. And what will that be like do you think? Lower earnings and with downwards projections. So even though there may be some sort of a relief rally, a continuation of the bear phase is overall more likely. Anyway, I am still short NQ from the double top and see how it will play out. Whatever shall be, shall be