Markets Panics On CPI Report As PPT Steps In For A Major Short Squeeze Rally

US CPI came in hotter then expected & the markets hated it, with yields soaring & stocks puking on the news.

Earlier in the day news from UK Govt & later after the CPI report from the ECB with a leak piece of information saw the markets lift off the lows & reverse all losses from the CPI report.

However I believe the biggest contributor of the massive short squeeze was the Plunge Protection Team (PPT) stepping into the market to buy US stocks & bonds to settle the markets.

Knowing everyone was short it would take much to go from full panic selling to covering short positions.

At the end of the day all sectors of US stocks were higher, Oil rallied with dollar rolling over & US Govt bond yields tapering off the highs.

But the bigger questions is what happens next given the FED is no where near fighting CPI & the economy & markets are looking weak overall.

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Links to Articles:

https://www.zerohedge.com/markets/uk-gilts-sterling-surge-reports-kwarteng-folds-tax-cuts-no10-denies

https://www.zerohedge.com/personal-finance/us-core-cpi-surges-40-year-highs

https://www.zerohedge.com/markets/markets-puke-cpi-sends-rate-hike-odds-soaring

https://www.zerohedge.com/markets/stocks-erase-cpi-losses-after-ecb-headlines

https://www.zerohedge.com/markets/stocks-bonds-purgensurge-after-hot-cpi-rate-hike-odds-soar

#CPI #Bonds #Stocks #Yields #BOE #ECB #Markets #PPT #Pivot #Gold #Oil