Are Rosy CPI Numbers Fooling the Market? with Nick Santiago (Ep #483)

April 13, 2023

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends.

Today:

1. The CPI report was released earlier today. On a year-over-year basis, total CPI was up 5.0%, versus up 6.0% in February. That is the smallest 12-month increase since May 2021. Core-CPI was up 5.6% year-over-year, versus up 5.5% in February. All I care about is the market reaction to the news and today the major indexes are slightly higher. At this time, the daily trend is still higher and until it changes traders must respect it.

2. Energy stocks are holding up well today. That group has been very choppy lately, but continues to remain in an up-trend. The important industry group that everyone should be watching is the financial stocks. This Friday, JP Morgan (JPM) will report earnings, so that reaction will be very important. As a trader I continue to watch the Regional Bank ETF (KRE) for clues on a daily basis. Should the regional bank ETF start to slide it’s a good indication that the banking crisis is back despite all of the central bank’s efforts.

3. Gold continues to hold up well despite it being overbought. This is now the safety play as gold is trading higher on fear. I’m not sure that is going to change anytime soon.

4. Bitcoin is above the psychological 30,000 level and the daily chart remains strong right now. Ultimately, the larger time frames is not a good pattern and signals another decline.

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