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Nick Santiago reacts to Thursday’s inflation data release

Financial Survival Network, Released on 6/10/21

1. CPI number comes in slightly hotter than expected.

Total CPI increased 0.6% month-over-month in May. Core CPI, which excludes food and energy, climbed to 0.7%. This number could be the catalyst for yields rising by 3 basis points on the 10-year U.S. Treasury Note to 1.518%. Yields are back to flat.

2. Initial weekly jobless claims.

Initial Weekly Jobless Claims for the week ending June 5th decreased by 9,000 to 375,000, hitting their lowest level since March 14, 2020. Continuing claims for the week ending May 29th decreased by 258,000 to 3.499 million, which is the lowest since March 21, 2020. This number is trending in the right direction. Disincentive to work.

3. The S&P 500 Index (SPY) is trying to break out to a new high. A new new nominal high made but it’s starting to fade. A new moon and a solar eclipse.

Today’s close will be important as the SPX has struggled to get above the May highs.

4. Gamestop (GME) is selling after reporting earnings last night. Down 13% or 40 points. They’re not making any money. All of the leading meme names are lower today. Wen is getting hammered to. I’m curious to see what the next meme runner will be. Be very careful with these stocks, this is the ultimate sign of froth. Homebilders are under pressure today. Tollbrothers is down 4%. They’re testing critical levels. Inflation is spelling trouble for the industry.

5. Gold/Silver were getting slammed earlier but have now reversed. Gold miners are catching a bid. Upside reversals are bullish for the metals. Charts are looking up.

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He successfully managed money for a large, affluent private client group. Nick is an expert in Technical Analysis. He is a highly regarded and accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. After applying his knowledge to his client base and meeting his personal monetary goals, he decided it was time to begin teaching those interested in learning his trading and investing methodology. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.com and realize his dream of educating others about the truth of the markets. He now co-heads the education department at InTheMoneyStocks and enlightens thousands of members, along with providing consulting services to hedge funds and institutions.

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