Find Where the Bodies Are Buried

With a whopping forward PE for 145, Snowflake is melting this morning in an otherwise mixed tape in front of tomorrow morning's CPI inflation print. 

However, SNOW is part of the suddenly lagging software sector, including CRM MSFT notable Dow laggards in the early going. 

Bulls will argue this is merely prof-taking after a strong run for MSFT, for example. But that fails to take into account the perilous technical spot for names like SNOW, seen below on the daily, then weekly timeframes, respectively. 

In essence, we have a clean breakdown in progress on multiple timeframes for a widely expensive long duration asset during a period of sticky high inflation. 

Hence, a lot is riding on tomorrow's CPI for many growth names similar to SNOW, which outnumber MSFT by a wide margin. I see no reason why SNOW cannot go back into the double digits in short order this spring. 

As we have noted, more and more folks seem convinced that inflation is over and rates will collapse. While I think that can happen, my point has been that it only happens if we have a total meltdown in the market and economy due to entrenched inflationary factors on multiple levels.