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

Follow on Twitter

Before you Trade Today: Know the Economic Calendar! Also See This Weeks Most Anticipated Earnings. NEVER BE SURPRISED BY EASILY ANTICIPATED MARKET BREAKING NEWS. That’s our goal here.

UPDATE FOR PAID SUBSCRIBERS: Still sitting on three short positions.

ALL SHORT POSITIONS IN THE MONEY! The first dumped 4% yesterday, the second dumped 4.92%, & the third dumped 1.67% (All Yesterday). All short plays in the money. Congrats! I feel I’ve done my job here. I’ll keep an eye out for new plays, whether you cover or not is up to you, however I will keep these plays present for now in case they pop. Some of them have earnings approaching with a mountain of uncertainty before them.

Follow on Twitter

TODAY’S OBSERVATIONS: The party starts tomorrow for the aforementioned reasons: June Inflation data (8.8% YoY expected / Core 5.7% Expected). And on Thursday, after the CPI on Wednesday, we have the PPI (Producer Inflation) for June expected to come in at 0.8% Month to Month / 10.7% Year over Year (Amazing). Finally, the icing on the cake will be Retail Sales on Friday (0.8% MoM Expected / 6.5% YoY Forecasted). And though Retail Sales will be the headline hog, We also have the July NY Empire State Manufacturing Index (-2 Expected), June Industrial Production (-0.1% YoY expected), June Manufacturing Production (-0.1% YoY Expected), Consumer Sentiment, May Business Inventories (an increase of 1.3% MoM expected), & the all important May Retail Inventories (+0.8% MoM Forecasted). Those retail inventories are not a headline maker, but if you’re heading into a new earnings season, & we are, you’ll want to pay attention to it. Even though its trailing data, it’s not without merit.

WEDNESDAY’S INFLATION CUT: We’ve been preparing for this day for the last couple of weeks.

• We know the job market & wages came in hotter than expected. Wages are more often than not the number one expense of any firm.

• We know June was the most expensive month on record for energy.

• We know that home prices are cooling, but scarcity is still keeping prices high … while rents are steady.

• We know that companies are having trouble offloading their inventory as people adjust spending habits due to inflated prices … meaning they may cut prices out of necessity.

Do I expect inflation to remain high? Yes. Higher than expectations? It would not surprise me. Lower than expectations? That would surprise me!

Regardless, the job market is strong & inflation is high, so there’s no reason for the Fed to not continue increasing rates by .75bps … or more! Let’s go ahead & price that in … this will continue. When the Fed finally has an effect on markets you’re going to see a spectacular show indeed! Will sneak up on folks quicker than inflation did.

WORLD MARKETS:

• Stock futures decline as Wall Street looks ahead to the start of earnings season

• European markets see another negative open as investors await inflation data

• Japanese stocks lead losses in Asia as risk-off sentiment takes hold

RECOMMENDED:

• Global food prices may be falling, but economist warns Asia’s food costs could still soar

• Euro teeters on the brink of parity with the U.S. dollar on recession fears

TODAY’S EARNINGS & CONSENSUS EXPECTATIONS: