🚗 Breakdown: What CPI Means for Interest Rates

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with today’s Chart of the Day. Headline YoY CPI increases to 3.2% … Spiking interest rates and killing the stock rally. The bad news is the Fed’s own internal inflation nowcast model shows CPI increasing again next month to 3.5%. [ Now, it sounds counter-intuitive but higher inflation now will ultimately force the Fed to cut rates and not keep raising them... Want to know more about today’s CPI number? Check out my video session down below. Let's Go! [ WATCH: Welcome to CPI Day Bill Griffo here with your CPI Day Coverage. What is CPI day? Well, there are factors (hidden to most people) like tectonic plates that move under the market and influence the shifts that happen. CPI numbers are one of those plates. CPI stands for Consumer Price Index and the number that was released today measures the change in prices that consumers have paid for goods and expenses over the past 12 months… Many people use CPI as a measure of inflation because if prices go up, that means the purchasing power of a dollar has decreased. During today’s live show, I watched the market’s response to today’s CPI numbers and I specifically highlighted the most important aspects in today’s news like: - Reasons for the market chop… - The CPI number today - 3.2% - and why it’s significant… - I covered inflation’s ties to CPI…and how the Fed and bonds are all connected… - Plus, I shared some international factors at play. [So grab a snack, and watch the video right here…]( -Griff [( Pit Report: HOOD Chart Analysis At first glance, Robinhood Markets (Ticker: HOOD) looks like a boring stock... [ It’s only been trading since July 29, 2021. It debuted at $38 and ran straight up to an all time high of $85 four days later. That lasted exactly a day as the stock closed at $51 the next day. And back to $39 a month later. [To take a closer look at the chart, click here.](- Licia AG's Views: Will We Make New Lows? From the desk of Option Pit Director of Education Andrew Giovinazzi After a nice rally this morning, stocks did not hold up. VIX hit the mid 14s only to close around 16 again. PPI is tomorrow, but prices did not seem out of hand today. [ 10-day SPDR S&P 500 Trust (Ticker: SPY) chart with 1 min candles This is the third time wandering down to 445 SPY. If inflation isn’t the issue, maybe US gov spending is. Stay tuned for tomorrow, but the reality is stocks don't make new lows. I keep thinking VIX is going to drop but the 1% intraday turnarounds are keeping that from happening. - AG OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Exchange-traded fund (ETF): A financial instrument that holds other financial assets like stocks, bonds and gold. [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Want to change how you receive these emails? You can [Unsubscribe]( or [Update your preferences]( This email was sent by support@optionpit.com. 1-888-872-3301 [Option Pit]( | 190 S LaSalle Suite 3000 Chicago, IL 60603 | [Privacy Policy]( This email was sent by support@optionpit.com to {EMAIL} Click here to unsubscribe | [Manage Preference]( Daily Newsletters ex. Vix Edge, Pit Report, Profit in Pumps, Power Moves, Power Income, etc. Option Pit | 190 S LaSalle Suite 3000 Chicago, IL 60603