It's a Dangerous Puzzle

There does not seem to be pretty much any fear in equities headed into tomorrow morning's Consumer Price Index (CPI) print, which reveals the inflation data as of June. I still expect inflation to turn back higher and surprise many who are looking for a Fed rate cut sooner than later.

Mind you, The Fed can do whatever it wants, including cutting into another wave of inflation. But the most likely scenario which surprises the majority of market players and pundits (not to mention politicians and central bankers) would be another wave of inflation which forces rate hikes and, eventually, calls for austerity with fiscal spending. 

Semis are still red on the day but well off the opening lows, in which the SMH ETF was down nearly 2%. Overall, dip-buyers have no fear and no reason for fear until see dips which keep on dipping. Given the move higher in rates on the 10-Year since July 1st it is likely that a move back over 4.5% would begin to rattle some cages in tech/growth land. 

As for ideas, nuclear plays remain strong after their recent dip. OKLO, on the first daily chat, below, looks like an actionable long setup. The following two charts, LOW and LULU, both related to retail, continue to look like shorts and are noticeably lagging the market today.