11Jan12:42 pmEST

Rate Cuts?! Rate Cuts?! I Just Hope We Can Get to 2%

This morning's hot CPI saw an initially muted reaction from stocks, followed by the expected dip-buy spot. This time around, however, the dip-buyers slipped up a bit as we have small caps leading the rest of the indices lower to the tune of 1.7% as I write this. 

Without question, we saw immediate attempts from The Fed "whisperer," himself, trying to soothe markets by describing a "mostly consensus" CPI report. Other Fed loyalists and staunch doves were out in full force throwing cold water on any notion of inflation picking back up, too. 

That said, the market seems to be slightly more spooked than usual by the report. And I highly doubt a March rate cut is on the table now, barring total calamity in markets between now and then. The next FOMC is January 31st. So we will get guidance then, in some way shape or form. 

In the meantime, I am looking to see if the bearish seasonality incoming after MLK Day (on Monday, a market holiday closure) will serve to sustain today's weakness lower amid a vast array of crowded, rich, and extended long-term leadership names, some of which ramped yesterday in yet another egregious display of complacency in front of the CPI. 

With a new earnings season upon us tomorrow as the extended big banks kick it off, bulls had better get perfection in these reports--Because the stocks are sure as heck priced for it. 

Elsewhere, natural gas is back at it again for bulls, as the CHK for SWN deal looks like a bullish development in the complex. I am surprised gold and miners are getting sold here, but will be looking for buyers to step back in soon to stay constructive on the group. 

Getting Spooky at Disney Partying of the Red Sea


This website is intended for educational purposes only. | © 2024 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site