May PPI was up 0.9%. Inflation up? But prices action still up.
5 min Emini Nasdaq 100
Hi,
How's it going lately? I would describe the current market at being stable and volatile... market is still ranging... NOT breaking new highs..
At 8:30 am this morning... May PPI figures were out... and apparently.. it went up 0.9%.. which means inflation concerns are up too.. obviously this is not good news.. but we will leave the interpretation to the market..
From the opening bell, price surged all the way till 10:00 am... I missed this trade, because my system did not provide an entry signal...Stochastics was already in the overbought region and Short-term MACD looked like it could turn down anytime.... it's easy to tell in hindsight that this might be a possible trade... but it's the consistent decisions that you make during trading that makes you money...
After 10:00 am... although there was a slight pullback.. prices ranged for most of the time... notice that Short-term MACD stayed close to the zero-lines? It's easy to get killed in these markets..
Learning point today: Don't be afraid to miss a trade, because opportunities are never ending in a market.
Fundamentals:
The May PPI was up 0.9%. That isn't the good news. It was boosted by a 4.1% jump in energy prices. The good news is that the core rate was up just 0.2%. That was in line with expectations but follows two 0.0% numbers. The trend is clearly not troublesome. The year-over-year increase in the core rate is a modest 1.6%.