To gain an edge, this is what you need to know now.
Short Squeeze
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows when CPI was released. Please see the Morning Capsule for details.
- The chart shows the initial selloff on the news of hotter than expected CPI.
- The momo gurus quickly turned the hot CPI number into a reason to buy stocks. We previously shared with you in the Interim Capsule,
The narrative is that worse than expected inflation means inflation will peak sooner and the stock market will go up.