📉 How to Trade the Market After CPI

Feb 14, 2024

Yesterday we had CPI results come in hotter than expected.

We were looking for anything 0.3% and below and the number came in at 0.4%.

Because of this, we saw a pretty significant sell-off in the market, led by the Russell 2000 which dropped over 4% yesterday.

The probability of a rate cut in March has been cut in half. We are now at an 8% probability vs. 16% yesterday.

In January it was a 76% chance. This is concerning.

Be careful again today. We saw large sell-offs yesterday and these are usually not one day events.

Trade management is crucial. It is ok to be wrong. It is not ok to stay wrong.

I review how to trade this market in the video below:

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