Prosper Trading Academy

Capitulation day: money runs to bonds and gold @cboesib CEO of @ProsperTrading, with @qmbigbeat (BigBeat) on Quasar Markets Live, Thursday morning. BigBeat calls it a capitulation day, and Scott agrees: "It was definitely a give up day. It was a total capitulation." Here is his reasoning. Inflation numbers came in worse than expected, and the odds of the Fed raising rates in October went from about 20% earlier in the week to almost a certainty. With that headline, and with the capitulation already seen in AI and tech stocks, you would normally expect the opposite move. Instead gold rallied, rates dove, and people ran for protective assets like bonds and gold. That kind of shift, he says, is the classic sign of the beginning of a capitulation. #Capitulation #Gold #QuasarMarkets

Great news can't lift stocks. Hot PPI is why. @CryptoHondo of @ProsperTrading on Quasar Markets Live, Thursday morning, after the producer price print. His point: when great news cannot make good stocks go higher, pay attention. PPI came in at 6.3%, which means producers are paying about 6.3% more for the inputs that go into everything from a Roku to a T-shirt, and that is significantly higher than economists expected. That is where the Fed might start to get nervous. Six months ago the argument was that inflation was gradually moving lower and the remaining problem was lagging costs and a few sticky services. With oil, diesel, freight, industrial inputs, memory prices and commodity costs all moving higher, Howard says that argument is very hard to back up now. #PPI #Inflation #Fed

Inflation cooled while consumers kept spending @CryptoHondo breaks down the August PCE report on the morning it came out. Consumer spending rose 0.9%, or 0.6% after inflation. In real dollars consumers spent about $191 billion during the month, $114 billion of the increase on goods and $77 billion on services, while inflation came in a little softer. His read: softer inflation with a consumer who has not fallen off a cliff, after all the talk of falling confidence, fewer job openings and a weakening labor market, is about as close to a Goldilocks combination as you are going to get. Howard Greenberg of @ProsperTrading, on Quasar Markets Live. #PCE #Inflation #QuasarMarkets