Weekly Plan 4/10
Inflate or deflate
Hello traders,
Hope you had a great long weekend and a happy Easter.
This week we have the all important CPI data coming on Wednesday and that will tell the tale of the next rate hike by the Fed.
More than anyone else, the tech titans and high beta fund operators would like to see a pause and maybe cuts by end of the year.
My perspective on the subject of inflation remains consistent, and until such time as the labor market exhibits signs of stabilization and the trajectory of commodity prices demonstrates a downward trend, it is profoundly challenging for the Federal Reserve to attain its established 2% inflation target. This may only be accomplished through the occurrence of an extraordinary, unforeseen event or by significantly amplifying the intensity of quantitative tightening.
Moving on, there are three additional noteworthy occurrences transpiring this week: FOMC minutes, the Unemployment Claims scheduled for Thursday, and the Core Retail Sales data set to be released on Friday. Nevertheless, as these economic indicators possess a strong correlation to the Consumer Price Index, it would be judicious to not allocate excessive concern or emphasis to their potential impact.
Earnings:
Banks finally report this week. It should be interesting how they perform. I personally would like to see some lower numbers by JPM 0.00%↑ and C 0.00%↑ so that I can buy them for cheap. Selling Cash secured puts on JPM isn't a particularly bad idea.
Other than that, I do not see much meat on the bone to trade anything this week.
Weekly levels: