📈 The Market Preps for CPI...

We are seeing positioning for CPI.

CPI Positioning

Yesterday we saw some interesting moves in the market.

We simultaneously saw the 10-Year Treasury sell off, Tesla rise, gold and silver rise, and tech stocks like META sell off.

Why is this happening? Investors are liquidating positions before CPI.

You would typically not see bonds sell off and tech stocks sell off at the same time - they usually move opposite one another. What we are seeing is traders simply exiting positions before CPI data releases.

Then why would Tesla move up? Tesla has a massive short position so the rise in the stock yesterday was simply short covering. Again, liquidating positions.

This CPI is going to be one of the most crucial in a long time.

Nobody knows what is going to happen. Protect your capital. You can always react to the news after it releases.

Watch this video for my thoughts on CPI and how it is impacting the market right now: