Founder's Trading Journal by 0 Comment Good Morning:This morning, I am a little under the weather as I have caught a summer cold.I will be grabbing some rest on this otherwise volatile CPI report day.The street already expects the headline number to be bad.And with commodity prices from Oil to Copper crashing for the last few weeks, the headline number is stale anyway.Inflation has peaked – at least short term. Earnings and recession are now the focus of the Alka-Seltzer crowd.A spike low down to 3400 or 3500 is possible on the report’s release.I would favor longs over shorts in such an event.A ton of cash on the sidelines could easily chase the markets higher if FOMO kicks in.We still have monthly options expiration weighing on the markets through Friday, which might hold any meaningful rally back until next week.And, of course, there are those exogenous global events such as Nuclear War to consider.The WEM low at 3833 drew the market back up overnight and will be a key magnet through Friday. Any sustained trading below 3800 will make the dealers start hedging their WEM low level and exaggerate losses.We have a plus or minus 60 points expected move on the day.My advice is to sit this out, let the market settle in, and then get aligned with the positive or negative trend.Suppose we get a spike, panic low. I will send out an alert if I see a bottom. If we get a panic rally, I will do the same.And we still have to traverse the wholesale inflation number tomorrow.As always, good luck and stay tuned.A.F. Thornton
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