«Stocks are soaring after October CPI Report.»
Remember when stocks got destroyed yesterday? Well fuhgeddaboudit! October’s CPI report arrived this morning to save the day, and the S&P 500 is gapping over 3% higher. This will be the largest upside gap since Pfizer announced the Covid vaccine on November 9th, 2020.
The parallels are fascinating. The Covid vaccine spelled the end of the pandemic. This morning’s CPI report of 7.7% year-over-year and 0.4% month-over-month could mark the end of runaway inflation. Markets were expecting 7.9% and 0.6%, respectively.
The odds of a 50 bps rate hike in December jumped from 56.8% yesterday to 85.4% today. Bond yields and the dollar are sinking; risk assets of all shapes and sizes are soaring.
Now, let’s see if the gap sticks.
Video Of The Day: Jedi Options – Bear Put Spread on $ARKK
In today’s Jedi Options, Coach Tyler explains his Bear Put Spread on $ARKK.
Chart of the Day: Sinking Mortgage Demand
Tweet from @NickTimiraos “The average 30-year fixed mortgage rate has been above 7% for the last three weeks, something that hasn’t been seen since 2001. Applications for home purchase mortgages (meaning, excluding refinances) are down 40% on the year, per the Mortgage Bankers Association.”
Today’s line up
Traders Lounge 11 AM EST
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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 Matt and Tim can deliver.
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