Morning Minutes

8-13-26

Good morning traders,

As predicted, fairly choppy day yesterday. PPI just dropped and the report was cooler than feared. The big positive was the -0.8% decline in goods prices, suggesting some easing in pipeline inflation pressure. PPI usually leads CPI by a few months.

This paints anther bullish picture longer term as it gives more room for the FED to ease interest rates.

This morning risk-on sectors are mixed with almost all defensive sectors up pre-market. Gold is also down pre market. This is hard to interpret but my opinion is that traders are rotating away from inflation hedges and waiting for tomorrow’s retail sales report before making a larger directional bet.

Likely another day chop as we continue to fill out this bullish pennant. Be careful playing the breakout today if we get it - manage your stops carefully.

No new positions opened up yesterday.