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WE’RE ON YOUTUBE NOW! See HERE, HERE, & HERE (Yeah … I’m REALLY excited about this).

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Before you Trade Today: Know the Economic Calendar! Also See This Weeks Most Anticipated Earnings (Note: Red on the Earnings Calendar Indicates an Earnings Loss [Not Miss] Consensus), & Yesterdays Insider Buys. NEVER BE SURPRISED BY EASILY ANTICIPATED MARKET BREAKING NEWS. That’s our goal here.

StockTips is NOW on Odyssey. Its like Discord … only Better in my Opinion. Android devise access coming soon!

TODAYS OBSERVATIONS: It’s an interesting morning prior to the inflation numbers on Friday (See Economic Calendar). We thought China was coming out of lockdowns; but parts of Shanghai are now implementing new covid restrictions. European stocks also pulled back ahead of the European Central Bank’s expected rate hikes. However we, at least at the time of writing this, are enjoying green futures as the market tries to reverse course after an ugly Wednesday … with inflation numbers inbound.

The National AVG gallon of gas is now $4.97 after jumping $0.015 cents overnight. We will likely be at $5.00 gas nationally before the week is out. Save your money folks! With prices this high a simple emergency or unexpected expense can sneak up on you fairly quickly.

The inflation rate YoY (Reported this Friday) for May is still expected to come in at 8.3% which is no change from April. May YoY core inflation is expected to deliver 5.9% which is down from 6.2% in April. Remember that the EPS pain from high inflation doesn’t come from the surge, but rather the peak & decline … whereas businesses begin to lower prices … which means lower margins … as a result of a customer that’s been effectively priced out. The more pain experienced by the consumer as a result of rising prices, the more firms will need to lower prices on already expensive inventory to remain competitive. Remember that YoY inflation remaining stagnate or even pulling back DOES NOT MEAN that prices are getting lower MoM. There is a baseline effect here whereas inflation is weighed YoY against the numbers of the same month a year prior. Last Month the inflation numbers came in higher than expected which was impressive given the YoY increase from March-April the year prior (1.6%). To remain flat as expected for May, inflation would need to keep up with the like YoY increase the year prior, which was 0.8% difference from April to May.

How will the markets react to additional Fed rate hikes? Remember the Fed was way behind the game on getting ahead of inflation & regardless of the Fed raising rates today, people were already getting priced out of the market. In short, the free market did what the Fed refused to ... which was what the Fed wanted to avoid. Now people are getting priced out of the market & demand is cooling, it seems as though the Fed was both behind the curb on getting ahead of inflation & behind the curb on finally raising rates ... resulting in raising rates during a time when people were already buying less. In short, both people & firms will realize higher rates just at a time when they will no doubt need credit to bridge gap to better times.

I remember when the Fed was a proactive, not reactive institution. It looks as though many will get hurt as a result of their reactivity.

For prices to truly decline the Fed will need to de-stimulate the economy, or consumers will need to buy less, to the point whereas commodity demand begins to fall. Meaning less demand for food, lumber, oil, gas, etc. Such a decrease in demand given the supply constraints will be tough to manage on a global scale.

BUY LIST UPDATE: Still sitting on one stock & one options strategy. I added a few short SUGGESTIONS in the paywall below.

TODAYS EARNINGS:

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PAID CONTENT IN THE PAYWALL BELOW: 1 Stocks on the BUY LIST near/at/above the Buy Zone (Waiting to Swing) / 1 Options Strategy / A Detailed Breakdown of Yesterdays Earnings Beats & Misses / Most Recent Insider Buys/Sells / IPO Lockup & Quiet Period Expirations / 19 Stocks on the Price Based Assessment Watchlist / 3 Stocks on the Stocks Under $20 List (Read the Warning/Disclaimer) / 3 Stocks on the Highly Speculative Highly Volatile Small Cap List (Read the Warning/Disclaimer) / 5 Stocks on the short possibilities list.

👉CLICK HERE TO SEE THE DETAILS OF EVERY STOCK ON THE BUY LIST (AND SEE THE PRICE ASSESSMENT BASED WATCHLIST / THE STOCKS UNDER $20 LIST & THE HIGHLY SPECULATIVE LIST)

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