A perfect storm will strike or be avoided Thursday morning, as the jittery market awaits the CPI number. We suspect it will be soft, and that's favorable although (of course) the bears will say that means slowing economic activity.

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The preamble to this week's 'main event' has been constructive consolidation with an upward bias in many areas, very much as we had contemplated likely. If it continues on a soft number, that will get sold into before rebounding anew. If the inflation number comes in 'hot' (unlikely), it will tank and then rebound.

If that infers I suspect S&P works a bit higher (even though enthusiasm lacks on our part as to valuation levels for most of the mega-cap components), very much as we've outlined likely for most of January after start-of-year jitters.

Clearly the market behavior agrees with us, that the inflation data will indeed at least show somewhat of a slowing trend. It might be more than many think, of course there are arguments both ways, but basically we prefer the slowing.

Meanwhile LightPath Technologies (LPTH) has been showing 'signs of life' and then a surprise 'offering' announced after today's close. Initial reaction was stunned a bit, but also recalling when I was 'at' their HQ a few weeks ago, CEO Rubin stated that they would 'not' dilute shareholders for routine operations. At first I was stunned (I'm told to avoid any stress with all going on in my life.. luck with that).. then I thought there's no reason to offer shares at such a low price level (and we don't even know that they are given the vague statement), unless either you're running out of money, or need to bring in fresh capital for what is already known as a 'new direction'...projects that needs to get off the ground expeditiously, but can't be internally financed? Oddly this may become a plus.

I can't take time to expand more, but will follow LPTH progress. It's always been speculation, and I'm not retreating from optimism if they execute.

It seems a poorly timed vague announcement, and lacks specifics. CEO Sam said it's neither a 'shelf registration' (but possibly a reminder that one already exists), nor from a position of weakness, but to encourage new investors that forward growth is being enabled. Still somebody's getting in awfully cheaply.

CEO Rubin said the offering provides funding to prepare for expansion, so I don't know why the PR didn't say so clearly. LightPath will be at SPIE at the month's end and we'll see if more can be gleaned. I can't speculate about the nature of customers such as DoD or automotive-related, but seems the focus.

Bottom-line: 

Market shuffling and slightly consolidating in an upward phase in front of the morning's CPI number as discussed. Nothing more need be on the plate for the morning, and in time we'll see the battle's resolution. There is a lot of 'Gamma Chaos' as a trader at Goldman termed it ahead of the CPI. It is also at the higher end of targeted rebound & resistance ranges for the S&P.

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Market Briefing For Monday, Jan. 9
Market Briefing For Friday, Jan. 6
Market Briefing For Wednesday, Jan. 4