Inflation is plateauing and likely to end flat in 2023
Inflation is plateauing and likely to end flat in 2023, so what will that impact the markets?
Though inflation peaked at 9% last year and has been declining to 6.4%, CPI seems to be plateauing and may close flat in 2023, but this is not good news at all. Why? Because the Fed wanted to see the CPI or inflation coming down to 2% in a sustained manner.
Studying across the 2-, 5-, 10- and 30-years yield, we are seeing all the 4 yields almost breaking above its October 2022 all time high again. As long as the inflation remain flat at this current level, the Fed will continue its moderate rate hikes.
Therefore, we are expecting more volatility ahead with a flat inflation number.
This is definitely bad news for the stock investors, but not for the traders. Since 3rd week of 2022, I have exited from my long-term hold for the U.S. stock markets to trading the U.S. indices with much anticipated inflation and volatility.
Also, trading into the Micro Yield Futures. Since it is on an uptrend, I prefer to focus mainly on buy on dip strategy.
CME Micro Years Yield Futures
Minimum fluctuation
0.001 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/gopro/
Though inflation peaked at 9% last year and has been declining to 6.4%, CPI seems to be plateauing and may close flat in 2023, but this is not good news at all. Why? Because the Fed wanted to see the CPI or inflation coming down to 2% in a sustained manner.
Studying across the 2-, 5-, 10- and 30-years yield, we are seeing all the 4 yields almost breaking above its October 2022 all time high again. As long as the inflation remain flat at this current level, the Fed will continue its moderate rate hikes.
Therefore, we are expecting more volatility ahead with a flat inflation number.
This is definitely bad news for the stock investors, but not for the traders. Since 3rd week of 2022, I have exited from my long-term hold for the U.S. stock markets to trading the U.S. indices with much anticipated inflation and volatility.
Also, trading into the Micro Yield Futures. Since it is on an uptrend, I prefer to focus mainly on buy on dip strategy.
CME Micro Years Yield Futures
Minimum fluctuation
0.001 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/gopro/
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