WE’RE ON YOUTUBE NOW! See 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. NEVER BE SURPRISED BY EASILY ANTICIPATED MARKET BREAKING NEWS. That’s our goal here.

UPDATE FOR PAID SUBSCRIBERS: Still sitting on three short positions. I’ve included my observations in the paid section. Looks like we timed it right! Everything lined up. Poor financials, inflation numbers inbound, & a mountain of uncertainty.

• SHORT 1 dumped an additional 3.9% after dropping 4% Yesterday.

• SHORT 2 dumped an additional 3.34% after dropping 4.92% Yesterday.

• SHORT 3 increased 1% after dropping 1.67% Yesterday. I’m going to see if it pumps after inflation data & I may re-enter.

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MY EXPECTATIONS TODAY: The market has the uncanny ability to rally after bad numbers … particularly when those numbers are released at a known time. Remember that traders act on this data well before the data is released (as is the case for the short positions in the paid subscriber section). This is not a rule, it’s just what often happens. And often enough to warrant our attention when placing directional bets. The only likely way the market continues a downward trend is if inflation comes in above expectations (a serious possibility, but why risk it at these lows?). Of course there could always be some negative news out of left field as well.

TODAY’S OBSERVATIONS: Today we receive June Inflation data (8.8% YoY expected / Core 5.7% Expected). And on Tomorrow, after the CPI today, 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.

THE MOST IMPORTANT FOR LAST: I highly encourage you to read THIS ARTICLE by Kristen McKenna (Managing Director at Darrow Wealth Management). It will take you roughly 4 minutes. I read a lot of financial news, analysis, & commentary … this is a MUST READ. It speaks to how markets trade amid recessions historically. I found it profoundly insightful & a good reminder. Yeah, its been a bit since we’ve had a recession, so its easy to forget that stock prices will eventually get so low, that fund managers stop caring about playing the market, & start playing the financials. Of course, its been a bit since we’ve had both a recession (we aren’t quite OFFICIALLY there yet), & inflation this high. So keep that in the back of your mind as you read it.

WORLD MARKETS:

• Stock futures are flat with all eyes on June’s inflation report

• European markets tread carefully as investors brace themselves for U.S. inflation data

• Asia stocks mostly rise, Tianqi Lithium recovers from earlier losses in Hong Kong debut

• U.S. Treasury yields tick higher as traders prepare for key inflation figures

RECOMMENDED:

• Consumer inflation is expected to have been even hotter in June, but it could be peaking

• The euro is near parity with the U.S. dollar: Here’s how travelers can take advantage of the exchange rate

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TODAY’S EARNINGS & CONSENSUS EXPECTATIONS: Expect this list to get bigger from here on out. Welcome to Earnings Season.