The CPI report was why it dropped. It first dropped immediately. Afterwards it moved back up to touch its original breakout before heading back down again. Rate hikes were priced in as soon as the real inflation numbers dropped at 7:30 am CST. Do you really think the market needed a fed member to tell us the economy was more fucked from inflation than they'd anticipated? That was shown in the data. Look at any strong breakout and price always moves back to test it before continuing. Every. Fucking. Time.
Whispers Of An Emergency Fed Rate Hike As Soon As Tomorrow
- Thread starter Bugsy
- Start date
I can guarantee you one thing. If Bollard did not open his mouth today, the markets might have close around BE, maybe even green. But he fucked it up with the extra hawkish words. I've been watching the charts in real time and associating them with headlines for quite a while now. His words were just like a Trump trade-war tweet, and had the same effect.
News matters, dude. A 100 BPS rate hike by July was NOT baked into the price. This is all new, AGAIN. And Feb 16th is going to be ANOTHER blow to the markets. A repeat of Jan 5th. But I am used to the pain.
Heres an article that dropped an hour after CPI and hours before Fed spoke explaining EXACTLY that.
https://www.zerohedge.com/economics/rate-hike-odds-spike-after-hottest-cpi-40-years
Yeah, I saw that article. Guess you missed the update, which is what drove the markets into the ground.
https://www.zerohedge.com/markets/s...bps-rate-increase-suggests-inter-meeting-hike
This article shows that the market has priced in that rate hike before he ever opened his mouth based on the data. There are actual charts the take in every piece of data to predict number of rate hikes in a year and it went up as soon as CPI dropped. It was going down past 4530 regardless if hed spoken.
I'm sure him speaking added to the free fall in confirmation, except it was already dropping before he spoke. It had already touched support, gone back up to test break out, and was already headed back down before he opened his mouth.
Did you even read the article? Come on, man. Let's look at the list, you know, #1 with the thing. And then we have the second one thing, number 2. C'mon man, let's go.
I'll also say this, I never, ever, use or need news to trade. Every decision is based on price action, because the chart is always ahead if the news. The only thing I do is check the calendar to make sure I have my positions closed out before any data drops.
I was referring to my article I gave you in that post, your post with your article dropped before I hit enter so that post just looks like I was referring to your article.
Well, then we are both discombobulated tonight. Let's continue the discussion tomorrow if there is one, hehe.