CPI Data Hits & It’s A Nothingburger — Don’s Daily Brief

by | Jan 12, 2023

Okay, so CPI came out today and it was kind of a big nothingburger.

This was supposed to be the biggest CPI print ever — The most relevant one because the Fed’s last CPI print before what is now probably one of the biggest FOMC meetings ever at the end of this month.

This is a good lesson in expecting expectations:

You don’t trade what you think the market will do — you trade what you think everybody else thinks the market will do.

That’s really the whole trick and the market came in with expectations that would be significantly lower and evidently a lot of people were betting that it would be even lower than that.

So it makes it really hard to get a massive rally out of the S&P or equities when the news actually comes in. That rally was already baked in the cake by market closed yesterday.

The S&P is just kind of casting about right now.

The Fed has quite a bit of wood to chop. I don’t think they’re anywhere near done and I think we’ve kind of seen a near-term high in the in the equity markets.

For our daily pick: Every now and then I do what’s called a Sizzle Stock review in my Prosperity Pub channel. We look at viewer’s stock tickers based on the Volume Profile and the Opportunity Zone Scanner as well.

One name that came up today that I thought looked pretty interesting and I wanted to share it with you is Eaton Corporation. And this is all based purely on how the Volume Profile sets up.

This volume profile shows building volume at lower prices and this is on the last five days. And it’s also in the Opportunity Zone.

This implies that we’re going from 165 down to 157 at the least.

And when we zoom out to the 10 day, you have that same sort of bearish pattern.

This is a very bearish bias in my book down to 153 if not more.

On the 30 day, I see that the level we’re at now could be forming a base for a rally higher.

► So if you take this short, don’t do it unless ETN drops below the Opportunity Zone today.

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