All eyes will be on the CPI print at 8:30 EST today. Markets have continued to move higher following the rally last week. The CPI print is expected to show a cooling in inflation, coming down from peak prices in June of 9.1%. A month over month slowing is projected from 8.6% to 8.1%. Markets have boosted off this projection as traders hope that a decease in inflation might make the Fed soften their rate hike from the .75bps to .50bps. As I have said before this is mostly unlikely to occur, as significant macro indicators still hold more weight for a hawkish Fed decision. Also, the core CPI is expected to increase, as wage and housing costs continue to run rampant.
#AAPL continues to show support since the major event release. AAPL continues to gain market share in China. The price cap on new iPhones , seems to have worked, as market penetration continues to rise from pre-orders in the US and China. Still buying into long positions, but keeping cash to buy into the next pullback.
#CMG is flirting with resistance, but could push into the 1770 plus range, where a long credit spread could reap big gains.
#TSLA continues to push higher after the bullish trend was reached. I have sold more puts and added more calls into a nice 35 point credit spread. The stock could push into the 310 price point if the CPI number is received well by the market.
I expect the market to continue to push higher if the CPI number is within estimates or better than expected. Short squeezes will continue to take place, driving the indexes and stocks higher. This is common in weeks before the Fed releases meeting notes. This could be the pump before the storm, so keep agile in the markets.
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