Hey! They're finally admitting it. Inflation is for real.
The PPI numbers released yesterday showed the total PPI up +0.9%. This is no surprise to us, in fact when they remove all things inflationary from the data they come up with this mysterious "core" rate which came in at 0.1%. After removing the "all things inflationary" from the PPI, we are left with the spin which says that the η”°ore inflation remains tame".
All I can say is "Talk to the hand".
This morning the CPI data came in at +0.6%, with the core up 0.3%, both higher than expected.
Like I have said before, we do not have to wait on the so called "official data" before we react to a trend. I think the inflation trend has been obvious for quite some time, but of course too many people react to what they read or hear from the media. I pity those poor souls.
Now that the cat is out of the bag so to speak, what's next?
It looks as if the overbought condition has been worked off, and I would expect a tradable bottom sometime today or tomorrow.
Hey investors! This tradable bottom is for traders only.
As an investor, use any strong rally as an opportunity to sell. You need to assess your own asset allocation model when doing this. For me, I do not want to be more that 25-50% invested going into the summer months.
