So here is everything that you need to know about the Producer Price Index Report. So this is the PPR report and I'm going to be sharing my screen with you in just a little bit. So what's going on Tina Tricky here we're talking to Tech But solution Tip that you guys are all having an amazing Thursday So today was the PPI report. If you guys haven't been keeping up to date, I Made a video yesterday making you guys all aware of the PPI report.

So this is like the CPI which is the Consumer Price Index. But now it's inflation. Um, pretty much on the producing side of things. so you know is inflation going up or down for producers and manufacturers.

The reason this is so important is that this type of report is normally used to be able to forecast future increases or decreases in inflation on the consumer side of things, right? Because if we're seeing inflation rise or decrease on the producing side of things that normally gets passed down to the consumer, you know, later down the road. So that's the importance and the value behind the Producer Price Index. The report came out today and pretty much what it came out too was our previous inflation report for the PPI was 6.2 percent. If you go to the Bls.gov forward slash PPI which is the free website where this actually gets posted at the US Bureau of Labor Statistics you could see that we saw an increase of 0.7 percent for the month of January.

The market expectation we talked about this yesterday was 0.4 percent. So point four percent was what was expected. What we saw an increase level was 0.7 meaning that inflation actually went up more than what was expected in the month of January. This puts our overall inflation rate for the Producer Price index for the past 12 months at six percent.

So because they drop off the old month and then they add the new one for the month of January, it still gets adjusted and instead of the 6.2 we now sit at six percent inflation for the PPI report. So what was reported, it was an overall six percent inflation for the adjusted past 12 months. But we saw an increase of 0.7 percent in the month of January when the market expectation was a point four percent. So when asking the question, why is the market reacting in a negative way, it's because it should.

The market should be selling off. Because this report, just like the CPI data report, came out higher than expected, there's no reason to sugarcoat it. There's no reason to over complicate it. These reports are coming in hotter than expected.

Now for everyone that's asking now, does this mean that the Market's going to crash? No. As of right now, the NASDAQ Market Again, we talked about it during my live trading session with the Lppt team. I Even live streamed the PPI report. For those that woke up one hour before the market opened, you can feel free to watch it as the one right before this video.

But you continue. the overall NASDAQ Market has been indicating signs of an option that has been holding above the moving average. It's been making higher highs and higher lows and one thing that I've been talking about is I've been expecting the market to drop for the past week, yet it hasn't dropped. Why have I bet? Why have I been expecting that? Well, knowing that the CPR report came in lower than expected and knowing that now this PPI report came in lower than expected, it has every reason on why to pull on back.

We also haven't made new progress on the NASDAQ Market dating since February 2nd. So since the start of February, the NASDAQ market and the S and the S P 500 has not made new highs. So why do you still have an open position if that open position is not making you any more money than what it did literally over 14 days ago, right? That's the question to ask yourself. Any open position is a position that's open to risk? Is there a break of pattern yet? No, definitely not.

Do you have to have an open short position with the market? No. Definitely not. Because the market is not actively selling off, we're still trading above the moving average. We're still trying to make you know higher lows, but again, the longer that the market prolongs a pullback, the harder it will drop.

That's The easiest way for me to put it. It's not that it has to drop today. It's not that it has to drop tomorrow, just that eventually it will. And when it does, the rug will get pulled.

And these bears are these bulls that continue to not lock in profits or not reduce their position size at overbought levels. Will cry and will complain about the markets against them. The markets rigged. But guess what? It's not rocket science.

The market hasn't made any progress for the past two weeks. So why are you still holding a full position in a market that has not shown any progress in the past two weeks? Again, it's It's as simple as that. all these inflation reports, all these unemployment reports that are coming in, they're either coming in as expected and or hotter than expected. What did Jerome Powell say last week In his discussion in Washington DC he stated that if economic data shows that inflation is coming in hotter than expected, they will raise rates more than what is it expected For 2023, What do you think is going to happen when the Federal Reserve announces a larger than expected interest rate hike? What do you think is going to happen when they reduce their balance sheet up to 95 billion dollars for the first time in the next couple of months? What do you think is going to happen, right? Yes, it is great to prepare for your long-term plays, but it's also important to take downside risks into consideration, especially when looking at the overall NASDAQ market and where this overbought and haven't pulled on back to the moving average, the more that we prolongly pull back, the harder it will drop and that's just something that I guess we'll have to follow up with.

So as of right now on the five minute time frame, we're still trading below the moving average. We're testing the EMA support if we break below this EMA line. My learn plan profit team already knows I'm waiting for confirmation. Once we break below that, I'm going to jump in with about a four to five hundred thousand dollar short position shorting the NASDAQ Market as it drops and retests previous support levels.

and again, if you tuned on into our live session today I Literally called out the support. Not because I can predict the future, because I definitely can't and I'm wrong again often. But it's not about that, right? It's just about understanding previous patterns and looking at previous lows as of yesterday. I Respected previous lows as of yesterday.

So when the market was selling off and people were like Ricky where do we lock them profits it just made sense to respect what was happening yesterday and our support range that we showed around 304.50 So very happy that we reduced our position size. The market did quickly change direction right out. Market Open. It looks like it's trying to hold and congratulations to the Bulls because you guys are definitely putting up a fight.

But again, only time will tell. If we break below the EMA then I'll I'll start. Uh, really? step on the gas on my short position, but if we break above the moving average then it's back for the bolts, right? The Bulls are going to go back to retest the 310 315 resistance on the NASDAQ and you have to respect it. It doesn't matter about what I think or my opinion or my hopes or my desires of the market to pull on back as of right now I have to again over everything.

Just respect current market. Direction Yes, I Do believe that the market should be selling off, but it doesn't matter about what I Believe it matters what the market is currently doing right now. So if you don't want to put yourself in a tough position, then don't take tough trades right? It's that simple. Over, don't over complicate it, Set those alerts, wait for that confirmation and keep trading simple.

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Um, like always, let's make sure that we end the year on our green now. take it easy team!.