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This morning’s big economic report came out, and for the third month in a row, the month-over-month producer price index came in higher than expected. A lot higher.

The core PPI also came in high as well.

As of this moment, the /ES and /NQ are still green, although the wind has certainly gone out of their sails. Considering the frothing bullishness out there, it’s no surprise people are still bidding things up, especially since they are married to the fact that seasonality GUARANTEES nothing but up days from here.

Yesterday, the /NQ tagged its Fibonacci (left side) before reversing. The PPI softened things up a bit here as well.

The only red on my screen right now at all is crude oil, whose post-Hamas spike (left side) I speculated would fade. It has eased up off the surge, and I bought HAL and MRO puts yesterday in anticipation of this.

Tomorrow morning is the more significant CPI report, which, again, people expect to be the sequel to the burst we saw on October 13, 2022. We shall see.

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