Coach Mark here

The first look at the GDP numbers came in this morning and they were impressive. The U.S. Bureau of Economic Analysis reported that the U.S. economy grew by 3.3% in the final quarter of last year. This was significantly above expectations and at least for a day (or a morning) is resulting in economic sensitive sectors (such as small-caps) leading the charge providing a little more breadth to the bullish conditions than we had experienced over the last week.

What does a hot GDP print mean overall? What should we take from it? By its nature the GDP is a lagging indicator. It tells us what happened LAST quarter…not a look ahead to what is in the future. Still, it adds to a narrative that has been present for the last year. A resilient economy that does not want to break despite interest rates that have been higher than we have experienced in many, many years.

Tomorrow is the most important economic report of the week. The Core PCE Price Index comes out with important inflationary data. If that data comes in favorable it gives the bulls a short-term goldilocks narrative of a strong economy with falling inflation. However, if it comes in hot then we might be having another discussion. One involving higher yields, fewer rate cut expectations and a tougher backdrop for bulls.

Will break it all down on the Halftime Report today along with Tesla and many other companies earnings. Have a fantastic day!

Chart of the Day: 10-Year Treasury Index

This is a very important chart heading into the inflationary data tomorrow. It is in a “go or don’t go” type pattern and if we fail to break out here then it is very constructive more risk assets in general.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only the coaches at Tackle Trading can deliver.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.