In the News
On Wednesday, the Fed reported an inflation tick up to 6.2%. There was a market sell-off in bonds which led to a repricing for the worst. Inflation doesn’t seem so “transitory,” at least with all the current market forces at play.
Here is what’s in the news for this week:
- Retail Sales Numbers
- Housing starts
- Initial Jobless Claims
We didn’t break/settle above the resistance line. Instead we dropped in a major way. You can see the massive red candlestick the day CPI numbers were reported.
I mentioned how I wanted to see us break above the top resistance line before any cheering took place and how I thought a retest of the middle support would occur. It blasted through that, now looking to retest the 6 month lows.
Last week I said, “I’m locking rates in. With the supply chain issues currently in play, CPI numbers Wednesday should show prices have increased.” Nothing has changed from this view. Although I may get lucky, I’m not looking to float rates these days.
Please feel free to reach out with any questions with regards to rate and my thoughts on them. I’m more than happy to help out any way I can.