Markets Have Wild Ride After Hot CPI Report Array ( [cookie] => c0b1c8-87862a-73d0dd-ea54dd-4346d7 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 0 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 44649 [user_id] => [reason] => [method] => ) 1 and can accesss

Well, that was a truly hectic week in markets. If you don’t like the direction prices are going, just wait a few minutes. The CPI came in hot. It was up 8.2% on a YoY basis and 0.4% for the month, which was above the 0.3% estimate. The report was ugly. Core inflation showed unexpected strength and went up 0.6% against the 0.4% estimate. Futures tanked, and it looked like it was going to be an ugly day. We were right in the middle of our research meeting, and when we emerged, markets had made a serious turn positive and rallied into the close. As Mark Newton said during the meeting, markets have been known to bottom on bad news. There was colossal upside volume. Mr. Newton also mentioned the enormous low to high range was a positive from a technical perspective.