Happy Ides of January! Today, the S&P 500 gained 1.8%, driven by better-than-expected CPI data. The core CPI came in at 0.2% month-over-month (vs. 0.3% expected) and 3.2% year-over-year (vs. 3.3% expected)—just enough to move the market.
However, we didn’t break through the 50-day moving average, a key resistance level. Also worth noting is the steep yield curve, suggesting the market expects interest rates to remain high.
What’s next? Will we close today’s gap, or see a breakout? To navigate this uncertainty, I’ve leaned into straddles and strangles on SPY—giving me flexibility for upside or downside moves.
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#CPI #OptionsTrading #MarketAnalysis #SP500
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