from Daily Market Wisdom with Nick Santiago
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 rising to 8.6% in May. This is the highest increase since December 1981. This number was also above expectations and the markets are reacting with a sharp sell-off. Dow down 700+ points. Next week, the Federal Reserve will make their interest rate policy decision. They are expected to raise the fed funds rate by 50 basis points. This news is already baked into the cake, but the fed is still far behind the curve. You see, the fed funds rate should be around the 2-year Treasury note yield and today that is surging to 2.95%. So the Fed still has a ways to go before reaching that number.
2. Everything is falling. Stocks, bonds, gold and even energy stocks are slightly lower. Next week is also options expiration for June. This is a quarterly expiration which is called a quadruple witching expiration. That means there are 4 different asset classes set to expire next week. This usually makes for a lot of whipsaw and sometimes volatility. Also expect a lot of institutional game playing with many of the popular stocks.
3. Bitcoin is also on the weaker side today trading back below the 30,000 level. It is still holding the consolidation pattern from May 13th, so it has a fighters chance to uptick still. Please note, the bigger trend is down for bitcoin so if it starts to break the consolidation pattern the selling could pick up quickly.
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