You are currently viewing Lund Loop Basic. To get all the benefits of the Lund Loop, upgrade to Lund Loop Plus.
By design, I stay away from macroeconomic topics in the Lund Loop. However, today’s CPI numbers are worth mentioning. I’ll let FinTwit do the honors.
Over the past few months we’ve heard:
There’s no inflation
There’s some inflation, but it’s minimal
We have inflation, but it’s transitory
We have inflation, but it’s limited to specific areas
Here’s a little bit more color on our current status, via YOY price increases by category.
Dining Out +6.0%
Food at Home +6.5%
New Cars +12.0%
Meat, Fish, Eggs +12.5%
Gas Utilities +24.1%
Used Cars +37.3%
Those are some pretty compelling numbers.
Look, I’m not an economist, but I can read a chart. And the chart below looks to me like a breakout from a big base to me.
And that tells me that inflation is going to be with us for at least the near future.
Is that bad for the stock market? Some folks don’t think so.
Here’s the big takeaway.
You’re going to see people coming out of the woodwork on both sides of the political aisle putting their own self-interested spin on the topic of inflation – what causes it, what can we do about it, will it hurt the economy, and so on.
Pay them no mind.
Don’t let the macro talking points seep into your micro trading mindset.
If you’ve got some long-term investing thesis around inflation and want to give it a shot, go for it. My suggestion would be, make sure the technicals support it, but either way, I get the concept of giving it a shot.
But don’t confuse what may or may not play out over the next few months or years in inflation with the supply/demand dynamics of a daily chart, let alone a 5 or 15-minute chart.
In terms of market action today, we saw a lot of gap-and-fade action, which is why we continue to buy weakness and sell strength.
Okay, let’s get to the charts.
Today’s Featured Charts: ADA, AMD, AMZN, BABA, BTC, CCL, COIN, DIS, ETH, FB, HNT, JETS, LCID, LVS, MS, MSOS, MT, MU, NCLH, NFLX, NVDA, QQQ, SQ, TWTR, XLF.
Upgrade to Lund Loop Plus to see the charts.
It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.
Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.