Is it Possible the Fed Raises a Full 100 Basis Points?

Dear Traders,

I am again writing to you from northern Spain, where I’ve taken some time to enjoy running in the mountains. However, it’s proven difficult as I have had to get up early to get my runs in due to the temperature hitting as high as 42 degrees Celsius (107°F). Thanks to Aiman for covering the Open with Brian this morning in my absence. I know you’re in good hands. The recap should be up later today and you will find it on our YouTube channel here. While you’re there, be sure to subscribe to the channel in order to be notified of both our live broadcasts each day and the other content we produce.

Speaking of hot, what a CPI number yesterday! The headline number accelerated to 9.1% year over year, which was well above the expected 8.8%. This is the highest reading since 1981. Higher energy and food prices drove the increase while the core CPI rating, which excludes energy and food prices, decelerated for the third straight month. With recent pullbacks in fuel and other commodity prices, this hopefully means inflation has peaked and we will begin seeing those numbers come down overall. With this extremely high CPI print, the Fed fund futures are indicating an almost certain 75 basis point hike at the next Fed meeting in addition to a real chance that a full 100 basis point hike is in the cards. I’m curious to see how the markets react over the coming days and weeks.

At Bear Bull Traders…

I hope you were able to catch Créde last night for her Wednesday Psychology webinar on imagining your trading success. If not, you’ll be able to find the recording of it in our Education Center here.

Today, for Thursday Mentorship, be sure to join John at 11am ET in the webinar room. Also, as earnings season has kicked off this week, Ed will finally have some earnings to trade after hours during his mentorship session that begins at 4pm ET. And last, but definitely not least, please take the time to join Thor at 8pm ET for his weekly mentorship session.

To your success,
Andrew

PS – If you’ve been contemplating becoming an Elite member, now couldn’t be a better time. For just a little bit longer we will be able to offer the REID50 promotion, which will give you 50% off the cost of an Elite annual membership plus a free one-on-one coaching session with Dr. Kenneth Reid. Dr. Reid is both a clinical psychologist and an experienced trader. He has traded his way through and successfully weathered multiple bear markets. He recently presented a webinar for us entitled 10 Things About Bear Markets, and he is ready to discuss with you the right way to either begin or continue your trading journey in this volatile time. You can check out the offer here, while it is still available.