So why does the stock market have such a low expectation for tomorrow's CPI Data Report: What's going on Team! It's Ricky here with tech Solutions Uh First off, thank you to everyone who dropped a thumbs up on my previous video. It looks like we got over 1,000 likes. So yes, I will be hosting tomorrow's CPI data report live on this YouTube channel. So all you have to do is subscribe and turn on your post notifications and I will take care of the rest.

But I Got asked a really good question in our previous video and just the why. These are the questions that I absolutely love. Because you're not asking me to tell you what you should think or what you should do, but you're actually trying to understand Why Is the CPI data reports expectation for tomorrow so low? Let's go ahead and break it down. hope that you learned something new and if you do, please consider dropping a thumbs up.

First off, the CPI data report is released on this website and it's Bls.gov CPI It's free and available to the public tomorrow 1 hour before the Market opens. when we go live, this is going to update. This was the CPI data report that was released in December. Now we're going to see a CP I'm sorry this was the CPI data report that was released in January The one that gets released tomorrow is going to be January CPI data report that gets released in February We just click on the PDF and it's super super simple.

So the thing that I want you to understand about these, uh, the way CPI data uh is calculated is first off, well, what's the Market's expectation? Tomorrow's forecast according to Investing.com is 2.9% So we're expected to go from our current rate of inflation of 3.4% and drop to 2.9% So that's like a 0.5% drop. That's a pretty significant drop, Something that we haven't expected and seen in quite some time. The thing that I brought up to my Lpp team, and again, you guys let me know what you think. We've been doing a lot of consolidating here.

right around that 3% um, inflation rate we came from from highs of 9.1 and we're making steady progress, but we can see that again. Inflation has been pretty sticky for the past 5 to six months with a lot of choppiness in the high twos or in the mid to high 3es. so we'll see if tomorrow it does come in at the 2.9% as Investing.com expects it to. But how and why is this calculated and how is it forecasted to be 2.9% So the CPI data report: There's an actual formula and you can look it up, so if you want to do the math yourself, you can look it up I Like to look at this, just the general numbers and I like to think about each month as a piece of Pi and CPI is simply calculated with the previous 12 months taken into consideration.

So as you can see tomorrow, once it gets released, we're going to add the new month of January and remove the old month of January. This is January of 2023. We're going to be adding the January of 2024 and removing the old one. As you can see, this is the December one and we added the new one and it referenced the old one that was a.

1% increase, but December of 2023 was a. 3% increase. So the really cool thing about this is that now that we're going to be reporting for the month of January that gets released in February, we're going to be adding the month of January and removing the 2023 of January. But look at this again.

think about them as pieces of Pi that contribute to the overall inflation number currently at 3.4% but again, there's an exact formula, but even you can get a general understanding of it Doesn't take you know, a math scientist to be. Oh wow, we're going to remove a 0.5% increase and it's to be expected that in January the expectation is very low, so even if it comes in kind of like it did in November with a 0.1% increase or a flat like it did on OCT October where there is no increase, then you can see we take away a big contributor to our current rate of inflation at 3.4% and then we add 0.1 or 0 2, therefore having a very low expectation for tomorrow's CP data report, but based off of what is added for the new month of January and taken away from the old month, we are expected to see that significant drop and you'll begin to pick up on this that in months kind of like in March When our contribution as of right now that's already factored in is only a .1% increase, it's going to be hard to have much lower expectations for that month because it's already so low, right? Kind of like once we go full 12 months to October There was no contribution there. So maybe once we get to that point, you know we might expect somewhat of an increase for that current rate of inflation if inflation still isn't under control. The idea that I want you to understand is when we add the new month and we take away the old one and the old one for the previous year is one that contributed a lot to our 3.4% inflation rate, then you can see how we can expect to go from that 3.4% down to that expectation of the 2.9% that Investing.com has put in place.

and again, it's the overall Market's expectation. and that is what's currently getting factored in. That's why we saw a slight little pullback into the later hours, which is pretty common. Um, into the market close because again, the market just factoring in? Well, what if What if this inflation report does come in higher than 2.9% Then again, the market might sell off a little bit more so then you can see.

psychologically, this might encourage investors as NASDAQ is extremely overbought and at all-time highs. Why? they might want to lock in profits before a significant economic report such as the CPI Data report. That might contribute to some selling pressure if it comes in higher than what is expected. Because remember, we want inflation to go down because the Federal Reserve wants inflation to go down so they can begin to cut interest rates.

But if inflation continues to stay sticky and continues to stay hot and higher than what is expected, then the idea of us cutting interest rates is going to get continue to get pushed back as of right now. Again, according to Black Rock I think there's like four or five rate Cuts according to Black Rock Well go ahead and wait and see. I'm not here to predict the future. I'm here to prepare for it.

And one of the things that I love is catching and watching the CPI data reports I'd encourage you to do two things. First off, set your alarms for 1 hour before the Market opens. it's at 8:30 a.m. Eastern time and that's when we're going to be going live.

I'm going to go live about 5 to 10 minutes before just to make sure that we can all come together and again. Uh, prepare for the CPI Data report. The second thing is, don't feel the need that you need to trade that at that moment. Once the report gets released, it's a very active day.

There's going to be a lot of volatility and hopefully we can see an overreaction. It's one of my favorite things to do uh and kind of prepare for when the overall uh Market overreacts either on the bearish side or on the bullish side and then I can end up choosing to trade the reversal. It's a very entertaining day nonetheless, especially if you're an absolute beginner. I would really encourage you to set your alarms, show up, and just watch and enjoy and watch the market react to a very important inflation report.

So I Hope to see you there again. All you literally have to do is subscribe to the YouTube channel. I'm going to host it for free on this channel uh and I hope to see you there. So if you have any other questions, either comment down below or shoot me a DM via Discord or Instagram which is linked in the description and if you want to watch me tread live as soon as tomorrow, that's going to be the second link in the description down below.

Also, do not forget our uh Corvette giveaway has officially started and if you want to enter for your chance to win, that's going to be the fourth Link in the description down below. I Appreciate your time like always. let's make sure that we end the year on a green note. Take Care team!.