This morning’s cooler than expected July CPI Report has catalyzed a nice rally in stocks and created a “the coast is clear” mentality. The Peak Inflation Narrative appears to be confirmed and therefore the Fed is expected to slow its pace of tightening. Fed Futures are now anticipating only a 50 basis point hike in September as opposed to 75 before the report.
Everything is going according to plan – and that’s when I start to get nervous. While I’m likely early in selling my tech trading positions today, the easy money for this bear market rally has been made in my opinion. Late arrivals will likely continue to pile in over the next few days driving the market even higher – but I’m happy to sell to them at this point.