Why the market will go up

[farmerjohn1324]

In the last meeting, the fed already mentioned possibly slowing down the rate hike by the next meeting or the one after that. The upcoming FOMC meeting is on Dec 14. With unemployment rising from 3.5% to 3.7%, that will have some impact on spending and indirectly the inflation rate. Total non-farm payroll remains above 200k each month which is healthy.

I don't day trade, but was 100% all in the day before the CPI reading. It worked out nicely. Made more in that one day than my annual salary.

And 3.7% is still low.

Perhaps the Fed did a great job! They prevented a Covid-induced recession for a brief period of high inflation!

 

[Businessman]

They prevented a Covid-induced recession for a brief period of high inflation!

Except prices wont go back down after this inflation ends.

We will get left with the price of many goods and services 50 to 100% higher than before.

 

[NoahA]

Here in Canada we are at record low unemployment, 100K+ new full time jobs were added last month, and there are 1 million unfilled jobs. You know, facts, not the hysterics we get on the media and on trading sites. Sure, the central bank is by design killing some jobs, but we have a lot of slack right now.

Most of the jobs are in the public sector, hence a net loss and not a net benefit.

 

[Overnight]

Except prices wont go back down after this inflation ends.

We will get left with the price of many goods and services 50 to 100% higher than before.

Now that shrinkflation is out of the bag, every consumer goods company that never thought of this before will do it now. So inflation will still be there, but hidden below the headline numbers.

 

[farmerjohn1324]

Now that shrinkflation is out of the bag, every consumer goods company that never thought of this before will do it now. So inflation will still be there, but hidden below the headline numbers.

Someday we'll be like Uzbekistan where the smallest unit of currency is 10000.

 

[nitrene]

Trading yesterdays gap up was difficult.
I bought MRVL near the open amd then put in a stop and let it ride until about 2:00.
Trading in and out on a day like yesterday is very tough.

Should have just bought the junk stocks with no earnings aka ARKK or even ARKF (Fintech). I think ARKK was up like 13% at the peak yesterday.

 

[Overnight]

Should have just bought the junk stocks with no earnings aka ARKK or even ARKF (Fintech). I think ARKK was up like 13% at the peak yesterday.

That was a rising tide situation. Without the Fed behind her, Cathie is truly going to be in a world of hurt. She better pray to the Powell God.

 

[maxinger]

As long as the 2 and 10 year come down and the dollar weakens, the market goes up. Its that simple. Thats the correlation.
Unlike a few weeks ago when we gapped down and reversed strongly on a bad cpi , yesterday we gapped up on a good number. Thats why we have some staying power here. At least until we get another hot cpi.

Who cares whether it goes up or down?

As long as it moves, traders will be happy.

 

[ET180]

I think so.. Inflation will eventually fall further but only by so much unless we get a bad recession and stocks will sell off on that . Either way we bounce more but then hit a wall.

That's how I see it. Playing dollar weakness. Added some GDX earlier in the week and started buying emerging market now.

 

[HeSaidSheSaid]

the CPI report showed inflation is still rising (0.40%), but a little lesser than expected. it means the FED's job is not done yet, and we've seen +800 points pop before. we're not out of the woods yet. bond market is telling we're going to have recession, probably, next summer at this rate.