Hey, it's Ben.
Yesterday was a bloodbath.
Gold flushed $500, Silver crashed 12%, and the "Hot PCE" number sent the indices tumbling.
But today (Friday, Jan 30) is shaping up to be an even bigger battle.
Here is the setup for this morning:
1. The "Savior" Attempt (Apple Earnings) Last night, Apple (AAPL) reported record Q1 revenue and EPS. The bulls are desperately trying to use this to gap the market up and save the weekly candle.
2. The "Villain" Returns (8:30 AM PPI) Just minutes ago, the Producer Price Index (PPI) hit the wire. After yesterday's hot PCE print, the market is terrified that inflation is re-accelerating. If this number is hot, Apple's good news might get completely erased by "Fed Fear."
3. The Volatility Spike (9:45 AM Chicago PMI) This is the hidden danger. At 9:45 AM EST, the Chicago PMI data drops. This measures manufacturing health in the Midwest and is a leading indicator for the total US economy.
My Plan for the Open:
We have a massive conflict: Apple is pulling up, but Inflation is pulling down.
I am doing exactly what I did yesterday: I am ignoring the 8:30 AM data. I am ignoring the Apple gap.
I will wait until 9:45 AM—exactly when that Chicago PMI number hits.
By then, the Snap Trades V12 algorithm will have drawn the "Trap Box" around the morning volatility.
Here what happened yesterday on $SPY
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