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Another morning… another vital government data release.
Yesterday, we heard the Consumer Price Index (CPI) reading. And as Chief Trend Strategist Matthew Carr outlined, it would be a great day for bulls. The market reaction was precisely as expected.
Today, Matthew’s back again, but this time the focus is on CPI’s wholesale counterpart, Producer Price Index (PPI).
This is the favored inflation gauge of the Federal Reserve. But Matthew’s going to let you in on a little secret the bears, the mainstream financial press, and the Chicken Littles won’t tell you: the number doesn’t really matter… Who cares?
We know that seems silly in all the drama surrounding these reports. But all that matters is there’s improvement.
The Invesco QQQ ETF (QQQ) has risen on PPI for five consecutive months. Now, that’s nowhere as strong of a trend as we see on CPI. But the story is the same: as long as inflation - consumer or wholesale - goes down, tech stocks will go up. And both have been the trend for a months.