Back then the market was hoping for a pause, but was uncertain
when Core CPI came in at .3, the market now became certain that Fed would not pause
And as we all know certainty leads to relief which leads to gains
You found an exception with a very clear-cut explanation, every rule has its exception
Since may 2006 the rule has been .2 or lower and we go for new highs
Don't fight it
CPI matters big time! Talk to you next month
CPI is irrelevant. Both equities and bonds rallied last July on the 0.3 "core" CPI for June.
http://www.boston.co...xpected_03_pct/
SPX rose by 5 percent. 10-year yield fell by 30 basis points.
