| The Consumer Price Index (CPI) The CPI measures the average change in prices paid by urban consumers for goods and services. It covers a broad range of categories, including food, housing, apparel, and transportation. Overall, it's the most widely followed inflation measure in the U.S. Today, the CPI rose 0.4% over the previous month and 3.5% over the prior year in March. This was an acceleration from February's 3.2% annual gain, and it was certainly hotter than expected. As a result, markets moved into the red on fear that the Fed might delay rate cuts. But for us, this was a move we were banking on. A large reaction to news - up or down. We can look at our historic back test to prove the point. In terms of potential returns from trading the CPI, check out the data below. You'll see the 2023 returns for our unique CPI overnight trades. You'll also see the win rate is 58%. While that's not very high, you'll also notice the return on average is 21.96% overnight. This is solid data, and one we can certainly trade on for success. But when it comes to inflation reports, PPI hands us even stronger results. This is because unlike the CPI, the PPI is forward looking. It tells you what the producers were paying last month and if that goes up, that means the CPI is likely to go higher. Markets are always thinking forward, and the PPI is a better indicator of what the CPI will do. Producer Price Index (PPI) The PPI measures the average change in selling prices received by domestic producers of goods and services. It's sometimes seen as a leading indicator for consumer inflation as changes in production costs can later be passed on to consumers. Unlike the CPI, the PPI measures the price change from the perspective of the seller, not the consumer. It measures the average change over time in selling prices received by the producers for their output. When you look at the PPI historic returns using our unique overnight trading system, you'll see the average win rate is 75%, plus the average strangle return is 75.11%. YOUR ACTION PLAN Yesterday we got positioned on a trade for both the CPI and PPI in Catalyst Cash-Outs to try and capture the market moving magic of both. However, reports like the CPI and PPI are just a small sample of the government reports we're now trading live every week. In fact, we've created an entire system for trading multiple government reports like these, and there's nothing else out there quite like it. If you want the chance to collect huge overnight profits on one of our favorite government reports, click here.
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