So how can you prepare for the PPI data report and what exactly is it? What's going on? Team: It's Ricky here with tackled Solutions I Hope that you learned something new and I do want to remind you that I'm thinking of hosting a free live stream here on this YouTube channel and if enough people drop a like on this video I'd be more than happy to host it. So tomorrow, one hour before the Market opens which is at 8 30 a.m Eastern time, there is a PPI data report. This is an inflation report on the producing side of things. This one again would mean that I would have to go live about 10 15 minutes prior to the report being released.

If enough people want me to go live, I'd be more than happy to do so. So again, if more than 1500 people drop a like on this video, I'd be more than happy to go live. If not, I Totally understand. So again, if you want me to go live and you want to tune on in, please make sure you drop a thumbs up, Subscribe to the channel and turn on your post notifications because if you don't YouTube will not alert you when it is that.

I Go live without further. Ado Let's go ahead and quickly talk about what is a PPI data report. So again, we know about CPI which is the Consumer Price Index. It's known as our inflation report and that's where all the time and attention is spent on.

But the reason that the PPI data report is really important is, well, the producer Price Index is inflation on the producer side of things, right? So if producers are experiencing inflation, this can be a great tool to use as a forecast that will get passed down to the consumer side of things, right? So if we see in the month of January right of what is reported for the month of December because this is how it works right now on January 18th. tomorrow one hour before the Market opens, there's going to be a PPI report. This will be an Inflation Report on the producing side of Things that is the report for December that is getting released in January And if we see that inflation is going up, then that means that that inflation will most likely get passed down to Consumers later down the road. If we see that inflation on the producing side of things is actually going down, then that will get passed down to the consumer as time goes on, right? So the great thing about that is that you as an investor and or as a Trader can use the Producer Price Index which is not as popular because not enough people care about what's happening to the producers because everyone cares about what's happening to Consumer But you can be in the in the business right of using it as a tool for a forecast by seeing what producers are experiencing with inflation.

if it's going up or down, can better determine what's to happen on consumer side of things because we all know that's where more of the time and attention is at. So now when asking the question, well, where even is you know the inflation right now. Inflation rate? Uh, for the PPI right? So the producer Price Index right now has an inflation rate of 7.4 percent, so we can see that right there. Our previous inflation for PPI was 8.1 percent, and that was before the reporting in December our forecast, right? So the forecast that we have for tomorrow when asking.

Okay, so right now we're at 7.4 percent. Our forecast is 6.8 percent, meaning that they expect inflation on the producing set of things to go from 7.4 to 6.8 Now, this is already factored into the market, and this is where it gets confusing. Now, if the PPI report comes in higher than expected, the market will most likely sell off a little bit, right? Because that means that inflation on the producing side of things is not not dropping as quickly as expected and what's already been factored in. This is not like the real estate market.

Something doesn't happen later down the road. It sometimes not only happens right away, but sometimes it gets factored in in advance, right? The CPI data report last week is a great example. The CPI data report prior to it being reported Market had an expectation of 6.5 percent and the market was rallying even prior to the reporting when it was reported at 6.5 percent. There wasn't much of a positive reaction because it already got factored in.

So please note that when things get factored in right away, the market is less likely to react in a positive way if it doesn't exceed expectation. Now, if it comes in worse, then of course we can see the market actually drop. So again, what you're looking for if you're wanting the market to go up is for the PPI report to come in at either 6.8 percent or lower. That would mean that inflation is actually coming down quicker on the producing set of things.

Now, when it comes down to you shorting the market meaning that you want the market to sell off, you would most likely want it to come in at either 6.8 percent or higher. This would mean that inflation is not coming down as quickly as as expected on the producing side of things. Now, one of the things that I do want to remind you when it comes down to these PPR reports. um, is I actually want to use you know kind of like last month as an example: I'm going to go on the 30 minute time frame and I wanted to show you that again I Want to remind you that this is just one day.

So although there might be a lot of volatility tomorrow, it's not as popular as the Consumer Price Index So please understand that right? Do Not enter in a position because of tomorrow's volatility that you're going to end up regretting. It's just one day, and ultimately you know the Market's gonna end up choosing a Its true Direction So please understand that right? As you guys can see, the previous PPI report was on December 9th. When going back to December 9th, you guys could see here that we actually sold off. Prior to that, we were trading right around 285 which is relatively of kind of where we're at right now.

It founded Support and then the CPI data report was released and then it took off to highs of 300 before actually selling off. Remember, one of the things that we talked about you know last week when that CPI data report was released was understanding the oversold and overbought levels of the NASDAQ Market This is what I trade and this is why I'm using it as an example. If I were to ask you, you know, for the past couple of months, ever since, what is this September of 2022, we've been experiencing lows of 260 that can be viewed as our support range right? Once, twice, three times right? and then once our resistance range. Our resistance range can be viewed as anywhere from 285 all the way up to 300..

those are considered overbought levels where we most likely or most often get rejected. Nothing's guaranteed patterns tend to repeat ourselves. they don't always have to, But the reason that I'm pointing this out is because are we closer to the bottom or are we closer to the top? And if this report does not come in better than expected, then the market can react in a more negative way. especially with up-and-coming earning reports, right? We have Netflix reporting earnings this Thursday and then again, Big Tech is set to report earnings in the weeks that follow.

So understand that this is just one thing, right? We have the inflation report for the CPI tomorrow we have the PPI and then we have up and coming earning reports. So please understand that markets most likely going to be pretty inconsistent and pretty volatile for the next couple of weeks. This is called earnings season right? earning reports. When all these companies are reporting earnings and depending if they exceed or come below actual Market expectation will determine how the market actually reacts.

It's a very confusing time to trade if you have no experience, but if you do have experience, a lot of money can be made. But again, this is something that we cover within our learn plan. Profit: Cube I Also did want to show you right I Wanted to keep you guys up to date with with one of my short positions I'm up fifty eight hundred dollars on the day I have to reduce my position size and then I got back in. but as of right now I still have 6400 shares on Sqq and right now it's still making higher highs and higher lows.

There goes. We just hit six thousand dollars on the day. So even when Sqq is in the red I was able to walk away in the green because I was able to lock and profit 10 overbought levels. Remember, especially if the market does end up selling off tomorrow, your focus should never be on trying to predict the future, right? No one ever knows what's going to happen, but there's one thing I want to share with you that I Always share with My Learn Plan Profit Group I Would rather be late to a rally than early to a sell-off.

So if the market does end up selling off tomorrow, I don't have to have a short position prior to the report I can always get in during the sell-off and take my profit and cover it right. The same thing that if the market goes up, I can get in when the Market's taking off and then not be afraid to lock in profits. There's no need to try to predict the future, especially when there's huge volatility or Market volatility because of these specific inflation reports. Again, I cover a little bit more of this within My Learn Plan Profit Group and right now we are hosting our biggest sale.

So if you want to watch me trade live every day, if you want access to our A to Z video Lesson library and this cell ends on January 20th, we're doing 150 off so it's a one-time payment lifetime access you get to watch Me Trade live every day and on top of that, you get a free Mystery Box just by signing up. So this is for all New Learn Plan Profit members and it's valid until January 20th. So on the thank you page. Once you purchase it will send you to this page and all you have to do is click on this link so select your size and we will take care of the rest.

You get a free mystery box. So what that means is you get a free mouse pad, you get a free Wall Street Tee, you get a free trading flag and you get a free trading journal all included for free just for signing up at our biggest sell which is 150 off and again that is that second link in the description down below. I'm very excited to host the PPI report if you guys want me to, but again, what you guys have to do is just drop a thumbs up, subscribe to the channel, and then turn on your post notifications if you have any further questions about what we talked about today. I Hope that you know that I'm always one direct message away and that's either via Discord the first link in the description, or via Instagram And that's that third link down below.

Don't forget we are giving away a free Apple watch Ultra And that's that fourth Link in the description. If you want to learn more about our Apple watch Ultra giveaway I Am using the Weeble trading application. It is free for everyone in the US and by using my link, you can earn up to 12 free stocks when you deposit 100. And that's that fifth Link in the description down below.

I Appreciate your time like always. Let's make sure that we're in the year on our green map. Take it easy.