The PPI Squeeze

The weak PPI has ignited the "official" the Fed is done rally. Let's hope tomorrow's CPI confirms it especially since the drop in car and truck prices accounts for nearly the entire decline in the core PPI.

No doubt, the bulls need to build on the respect they've earned by producing this sizeable of a rally. Otherwise, we've just seen yet another garden variety short-squeeze and a very powerful one indeed.

Between now and tomorrow morning I'm going to count how many times I read about someone commenting upon the fact that the S&P 500 has finally closed above the infamous 1280 level. Any guess to how many occurrences I'll find? It should be quite a high number.

See you after the CPI!