So why is Market expecting for tomorrow's CPI data report that's going to be released on August 10th one hour before the Market opens. Why is it to be expected that inflation is actually going to go up when for the previous month, inflation has consistently been going down? What's going on guys? It's Ricky here and I'm going to be breaking this down in today's video on why Market is expecting inflation to actually go back up I Really hope that you learned something new and if you do, please consider if it's not too much to ask to drop a thumbs up and subscribe as I am going to be live streaming for free on this YouTube Channel tomorrow's CPI data report one hour before the Market opens and I hope to see you there, but you'll miss out if you're not subscribed. Let's go ahead and let me start sharing my screen so you can see exactly what is that I'm looking at I Would do want to update you on my position on Skq I Know it might not mean a lot to you, it means a lot to me I made 18K on the day and I didn't continue to trade after hitting my daily goal the mistake that I've been making even though I've been doing pretty good for the past two and a half three weeks. the mistake that I've been making is I always try to re-enter another trade even when I've already exceeded my daily goal now.

although this might seem very simple, like why wouldn't I take advantage of another opportunity I Just have often found myself enter a new position where it doesn't go exactly according to plan or I just spend so much more time and it's almost wasteful. I Either give a little bit of the money I made back or I do make money, but not as much as I originally did and just the efficiency behind it wasn't really there. So a big Focus for me today is once: I Hit my daily goal just to walk away and check this out I hit my daily goal Market Pulled on back. it set up this reversal on the five minute time frame it's very easy to see I Called it out with our Lpp team I Keep them up Today under our trade ideas on the five minute time frame this reversal was forming, we broke about VMA We got the higher high confirmation, higher low confirmation we broke above VMA We pulled on back, made higher loads this is a great sign and then it ended on on a nice little rally right.

Went back to retest previous highs of around 1925 1930. So I didn't re-enter I Stayed cash after selling and it was just testing my ability to stay disciplined. It might not mean a lot to you, but again, it's habits like this that I I'm trying to work on that I know will be very beneficial years from now. With that being said, let's be honest, let's talk about tomorrow's CPI data report As of right now, we sit at a current inflation rate of three percent tomorrow's expectation.

If you look at overall forecast is 3.3 percent. How? why you know every other previous the expectation was to go down went from 4.9 to 4.1 From five percent to five percent. Six percent to five point two percent. Six point four to six percent.

Why are we now expected to go from three percent to 3.3 It's very, very simple. So one of the first things that I want you to understand. my focus here on this YouTube channel is to encourage you to be self-sufficient I Don't want you to have to depend on someone else. So this: CPI AI Data Report: if you don't want to tune in, tune on in to my live stream this CPI data report you can find on your own for free on Bls.gov Forward slash CPI It is released every single month and then right on over here.

It always tells you the time for the next release as you can see the last release was back in July Uh and the up and coming one is August 10th 2023 which is tomorrow one hour before the Market opens which is at 8 30 a.m Eastern time. You can click on the PDF and then it'll populate. Just like this, it might look very confusing. It's literally super simple to read if you have trouble reading it.

I can make a video or you can tune on into Tomorrow's Live and Again I'm going to be breaking it down within that live stream, but the way that the CPI data report is calculated is there's actually a formula behind it. but it pretty much just takes the past 12 months into consideration. But if you see here right anytime that the report is released, there's a total of 13 months. There's June July August September October November December January February March April May June Right, And it's because it's showing you the new month that they are adding and then the month that they are removing.

So it should be one, two, three, four five, six, seven, eight, Nine, Ten, Eleven, twelve, Thirteen. All right. Just wanted to make sure a total of 13 months are displayed, but it's just showing you what is being removed from the three person or the I Think we were previously sitting at a um, what was it four percent and then that's when we went down to that three, Uh, three percent that it was reported. So it's very easy to see.

You know when asking the question, how is inflation going down so much? You have to take into consideration inflation is calculated based off of the previous 12 months and because in 2022, that's when inflation was really going up right? But in 2023, yeah, we are still seeing inflation present itself, but much slower than what we're seeing in 2022. So therefore, let's do this simple math if we add 0.2 percent into the formula, but then we take away 1.2 percent. Well, what just happened, We only added 0.2 We took away 1.2 Which means we just took away one percent, right? Because that is the difference between the two. So therefore, it doesn't really surprise me that we went from four percent all the way down to three percent.

Right now, there's an exact formula, so it's not just okay. You add point two and you remove 1.2 There's a formula that the CPI data report is actually used to calculate, but that's just to give you a very raw estimate, right? Why is this CPI data report different and I Explained this to my Lpp team this morning. If you look for the month of July in 2023 and this is going to be shown tomorrow, there was no change in inflation in 2022. Now that was great for 2022, but it's unfortunate because of how this is calculated.

So that means based off of this right, we're going to add a new month for July that's going to be reported tomorrow and we're removing the previous month of July. But the unfortunate part is the previous month of July for last year didn't have any change. So therefore, we really are not removing anything from the formula and we're adding whatever it is that we solve an increase for inflation in July. So if let's say an example I want to give you so you understand this if we add in the month of July for this year, if it gets reported that in July we saw an increase of 0.5 percent.

but then last year there was an increase of nothing, then all we did was increase and we didn't remove anything. And this is why it is to be expected that tomorrow's CPI data report is going to come in higher than expected. And it's because we finally have gotten to a point based off the previous 12 months that we are no longer seen. or it's no longer taken into consideration the big chunk where inflation was seen.

Huge jumps month over month. Now they're all on average less than 0.5 percent. So therefore, yes, we might see a jump. It might get choppy for the next few months as inflation begins to teeter-totter but this is why I Believe this inflation report is so important.

and it's because we are finally getting back to removing the big jumps and now getting to where we are right now with the 0.5s or less, right? So I just wanted you to have an understanding of why it is to be expected that tomorrow's CPI data report is coming in higher at 3.3 percent when when previously every single month we've been seeing a steady drop. I Think it's very important for beginners to always understand the why behind something. Why is that being expected And I really hope that this video explained it for you. When it comes down to reading the CPI data report again, it might seem very confusing.

It's literally super simple and I'm very excited to break it down with you guys tomorrow in tomorrow's live stream as we watch the market react to tomorrow's CPI data report I Know it might be a little daunting I Know it's very early, especially if you're in the west coast like I am I have to wake up at 5 30 for this report to be released I plan to go live 10 minutes before the report is actually released an effort to prepare with anyone who tunes on in. so I would love to see you there I Know it's a big ask to ask you to wake up early, but it's a lot of fun and again, you're going to be able to capture in real time the market reacting to this inflation report. If it comes in better than expected, can the market and Will the Market recover, Can the market or will the market sell off? This is why I chose to stay cash with my position today after selling it I didn't want to over trade because I think that instead of forcing a position today and then regretting it and maybe bag holding until tomorrow, right? or holding a small position, I can stay cash and I can wait for the market to react tomorrow. I Don't care if the market goes up I don't care if the market goes down I can make money either way.

as long as I focus on one thing and that's Market Direction drive you I feel very in control and I feel like I have options rather than I hope for something to happen and I think that's one of the best feelings. So I'm working on getting better every day and I would love to share this experience with you guys. So again, make sure you subscribe to the channel I hope that I earned a thumbs up. But also, don't forget if you want the ability to watch me trade live every day I Work with one team and one team only and that is my Lpp team.

We're running our biggest sell right now and that's 175 off. If you haven't checked it out already, take two minutes. Click the second link in the description down below and I hope that it's something that you see value in and if so, I'll see you tomorrow for our live trading session I Appreciate your time like always. let's make sure that we're in the year on our green note.

Thank you team!.