Stocks Rip as Inflation Report Comes In Light

Could we be heading a lot higher?

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Our View

Unfortunately, I have Covid-19 right now. I have had it in the past and the first time I didn't even know I had it. The other times I had it, I got sick but within a few days, I was on the mend.

So the View and the Lean are going to be a little light. We’ll have the recap down below, all the usual stats and the levels from HandelStats.

The CPI data came in light (see the economic calendar below), with each of the headline numbers missing expectations. That’s got bonds and stocks ripping, with the 10-year yield at its lowest level since September.

Remember to trade smart, use stops and stay disciplined. 

Our Lean — Danny’s Trade

This is Danny Riley’s personal trading plan for the day.

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MiM and Daily Recap

ES 15-min recap

The ES traded down to 4408.50, rallied up to 4435.50 on Globex and opened Monday's regular session at 4415.50. After the open, the ES traded up to 4419.25, traded down to 4407.25 at 9:57, and then rallied up to 4436.75 at 11:49. From there, it pulled back to 4222.25 at 1:36 and then sold off down to 4422.25 at 1:37. After the low, the ES rallied up to a lower high at 4434.50 at 2:50, pulled back to the 4426.00 at 3:04 and traded 4429 as the 3:50 cash imbalance showed $1.268 billion to buy and traded 4425.50 on 4:00 cash close. After 4:00 the ES drifted higher and settled at 4428 on the 5:00 futures close, down 5.25 points on the day. 

In the end, it's simple: The ES pulled back and rallied. In terms of the ES's overall tone, every pullback was bought. In terms of the ES’s overall trade, volume was lower: 242k ES traded on Globex and 999K traded on the day session for a total of 1.241 million contracts traded. 

Technical Edge

  • NYSE Breadth: 47% Upside Volume 

  • Nasdaq Breadth: 51% Upside Volume 

  • Advance/Decline: 48% Advance 

  • VIX: ~15

S&P 500 — ES Futures

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Economic Calendar

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.
Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!

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