Getting Set for a Hot CPI

Tuesday, still awaiting Thursday’s CPI numbers which should be scary, but we all know that. How does one stage out of this area? We start with the fact that the FED is reluctant to do anything aggressive, like a 0.75 hike or an immediate 125 billion balance sheet reduction.

For this report, with a Timid Fed and widespread fear, we are going hedged contrarian, 60 % Long SPXL, 30 % Short SQQQ, 10 % Long ARKK (put on today). The ARKK trade adds a little excitement, with so much confusion, why not buy what everyone hates, within reason.

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