Today's CPI Print Will Drive the Action

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As you know, I have been writing about the high price of crude oil for several weeks. The reason is with rates so high and inflation raging, it could be a precursor to a stock market selloff.

After falling earlier in the year, crude oil caught a bid at the end of June and has gone up ever since. It’s up 9 of the last 11 weeks and is up another 2% so far this week. Brent crude traded north of $92 a barrel yesterday — its highest price since November — and then took out that high this morning.

While the oil companies are doing great, the higher prices of energy will weigh on the stock market. Over the last couple of weeks, the PitBull has said there is no way stocks can keep going up as oil rallies, that “he just doesn't see it.” Meaning many of the top stocks he follows are not going up or participating.

Another scary tidbit, 80% of all US dollars in existence were printed in the last 22 months (from $4 trillion in January 2020 to $20 trillion in October 2021). Putin and Xi are licking their chops and what's going on with Iran and Israel? Any reduction in the flow of oil will put more pain on the US consumer and risk sending the US economy into a tailspin.

I hate writing about this stuff, but I also don't think we should be overlooking it either; it's too front and center.