At the time of my comment what I was thinking was this. CPI numbers were reported lower than expected, so people started buy equities (QQQ/tech stocks) as well as gold — at the same time. Why?

If CPI (or inflation) is coming down, why are they buying gold? Even if they expect a fed pivot with softening interest rates the inflation is still coming down (per the CPI report this week). Gold is supposed to be an “inflation hedge” right? So what’s the point of buying gold if inflation is supposedly coming down? I get it that usually when the DXY goes down, commodity prices go up (as well as the equities), but that’s because people make the decision to buy said commodities when the DXY is going down.

But if the DXY is going down because people anticipate interest rates to be softened AND CPI is being reported as coming down you’d think people will go back into risk on mindset and start buying equities for tech and similar stocks. After all per the report CPI is coming down and based on the tear-your-face-off-buying/covering people expect CPI to continue coming down (hence pivoting the fed to taper & lower eventually).

That was just my train of thought that morning on the huge 6% gap up while I had $100k short tech stocks. Which I still have as I sit here lighting my crack pipe full of hopium that this whipsaw will be faded into monday/tuesday of next week. LOL

What do you mean? Gold is rallying on the huge drop in the USD and real yields. Those are the metrics that move gold.

It’s interesting, CPI comes out less hot. Markets rally strong, but so does gold and gold miners. It’s as if the market doesn’t believe the CPI numbers.

Here’s a 10-min chart of /NQ with a few near-term pullback targets. Min. pullback target (T1 just above the 11235 support) would be a 1.4% fade of the reg session open (and 60m downtrend line short entry). One could also let an /NQ or QQQ short from the open/60-min downtrend line run while periodically ratcheting down or trailing down stops.