Inflation concerns are back!
They may have never gone away completely, but one could say they were swept under the carpet and ignored for a while.
While that was the case (if it was), the markets went back into their habit of making all-time new highs.
Today’s consumer price index data for October released this morning, pre-market, may not be the piece of news that kills the rally, but it put a stall on things for today at least.
The consumer price index surged 6.2% from a year ago in October, the most since December 1990. That’s the highest it’s been in 30-years.
The CPI increased 0.9% against the 0.6% estimate., (that’s on a monthly basis).
The increase in pricing for both food and energy are said to have wiped out the wage increases that workers received over the month.
Monitor your open bullish positions as you deem necessary and start seeing where a bearish technical or Money Calendar setup may be available and if at least putting your toe in the water on some bearish options trades feels prudent to you, make your decision accordingly.
Remember, Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen still hold fast to their view current price pressures are temporary / transitory and related to Covid issues.