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There we have it: back-to-back reports of inflation data which indicate that rising prices have pretty much left the building. Both the CPI and PPI came in below even the lowest estimates offered by any economists. No one seems to be considering the prospect of the U.S. getting mired in a deflationary economy, but all eyes will be on Powell next week to see if he drops rates. The BEST outcome for bears – – and mark my words on this – – would be if he DOES drop rates and, at the end of the day, the market still falls.

In any case, these chilly data points have warmed the hearts of bond buyers, who have pushed the /ZB firmly higher over the past couple of days.

For me, yesterday’s CPI report was a heart-stopper, because the /RTY went absolutely roaring toward the fabled “green line’, which marks the bottom of the bearish setup. It seemed for a moment that the small caps would simply bulldoze through that line and not look back but, thanks to a merciful God, it was a complete fake-out, and the /RTY has done little since fall since the report.

On a separate note, Boeing (BA) is getting hit hard on the news that, for the first time in history, their Dreamliner (the same jet I just few round trip to Tahiti) just in India. I’m not a pilot, but from what little I’ve read so far, it seems to me that it was pilot error and had nothing to do with the Dreamliner itself.

I’m late in the day posting this, so I’ll end here and keep it brief. We’ve got a pure red opening on our hands for a change, so let’s go get ’em!

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