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How to Predict Inflation Data

Inflation effects many aspects of the market from gold to bond yields to equities. Here are a few things to watch after the inflation data is released Wednesday. If you keep an eye on all of these tickers, which can be used as good market indicatiors, then you will get a good idea of the direction the market will go following the data release.
$Gold Futures(AUG4)(GCmain.US)$ $U.S. 2-Year Treasury Notes Yield(US2Y.BD)$ $U.S. 10-Year Treasury Notes Yield(US10Y.BD)$ $SPDR S&P 500 ETF(SPY.US)$ $VIX Index Futures(JUN4)(VXmain.US)$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf(UUP.US)$
Inflation has been dominating the headlines and investors minds for several several months. Inflation data is coming out Wednesday and it will surely move markets. How can we prepare ourselves? We can prepare ourselves by following the data. The consumer Price index or CPI can be used as a measure of inflation.
CPI is not an exact measure of inflation. It is more a measure of inflation the sentiment of the consumer as it measures the changes in price of goods and services based off of the purchasing trends and the opinions of the consumer.
In the United States Consumer Price Index is based on the prices of a market basket of food (14 percent of total weight), energy (9.3 percent), commodities less food and energy commodities (19.4 percent) and services less energy services (57.3 percent). The last category is divided by: shelter (32.1 percent), medical care services (5.8 percent) and transportation services (5.5 percent).
Follow the data. The data is available through many different avenues. If you do your due diligence then you will be prepared for any major move in price action if any.
And remember after the data gets released sometimes it will take a day or two for the world markets to digest the data. So it is possible that the initial move in price after the data release might not be the true and correct direction the market will move after the data is finally digested by the world markets. So be patient.
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  • 102640653 : How u see hongkong markets n Nasdaq futures

  • 102640653 : How your view on Alibaba . I bought some call warrants around here n decide next batch at 105

  • 102640653 : What’s your view

  • SpyderCallOP 102640653: there was negative news in China about the Macau lockdowns and how the Chinese government fined tencent and a couple other companies for some reason. this negative news brought a lot of the big companies in China down. but these kind of headlines typically happen around a support or resistance. these headlines came out at a perfect time near resistance for a profit take. so I'm not too worried about this very short-term downtrend. I can see 105 as a possible bounce point. and I can even see it coming down to 100 or 101 before it bounces. if it does to below that 100 price then I might sell some of my allocation to dollar cost average at a lower price

  • SpyderCallOP 102640653: and technically speaking this uptrend is still in play until Alibaba dips below that 100 price

  • 102640653 : These I think excuses to sell down the market . The way I see

  • 102640653 SpyderCallOP: Agree with u but it is being manipulative. Price is being justified more to manipulation.for me it is a good price to accumulate at 103-105 level. I think might be a small bounce on hongkong index in afternoon

  • SpyderCallOP 102640653: agreed

  • SpyderCallOP 102640653: it is definitely a form of manipulation. big investors and small investors both need a reason to invest. it is all about investor psychology. if the price starts dropping for no reason and then no investor big or small would invest because everything would seem random and investments would not feel safe. but when you give investors a reason why the price is moving up or down psychologically they feel more secure and investing.

  • 102640653 : True

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