Core PPI came in much higher than expected, as did the headline PPI. The market doesn't care. The more important CPI numbers come out tomorrow morning, and the market should care but I don't think it will stop these bulls. In fact, I expect there to some worrywarts waiting for the all clear sign after the CPI comes out to start buying. Thus, I am targeting a top for Thursday morning. The higher the better for a short entry.
I don't believe inflation is much of a problem in the developed economies. There just isn't enough wage growth and loan growth to support high inflation. Commodities inflation by itself will not be able to push the CPI high enough for the Fed to raise rates.
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