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Can Stocks Rally Despite a Hot CPI Print?
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Our View
What happens when the ES sells off before a Consumer Price Index? Well in yesterday's case it rallied, but the question for Tuesday is, what will happen today?
It's fair to say that March is known for its knockdowns, but will it stay down? All I know is the stats are slightly positive going into this morning's number. Even though the print came in hot, equities are rallying. Can they continue that? Keep an eye on bonds and yields, as well as the US dollar (More on this in the guest post).
I’ll be honest, I don’t know how the ES will react to this. A hot print last month resulted in a knee-jerk dip, but then a quick bounce back to new highs. However, I expect an increase in volatility going right into today's session and FRY-day’s March Triple Witching and its record $2.7 trillion in expiring options.