Due to a hot CPI, the market tanked on Tue, a bloodbath day! Then it had immediately not only recovered from everything it lost, but also had made new highs following the next two days. This morning the more important inflation data, PPI, was released. I thought no one would want to buy crazily just prior to the releasing of this important number but I was certainly very wrong. I seems everyone who was burnt on Tue had already forgot about the burning pain, as apparently they were eagerly chasing the market till the end of yesterday, like there was no tomorrow.
Sure enough, the PPI was equally hotter than expected. Those FOMOs have likely been trapped again, waiting for another bloodbath.
As the old saying goes, Being cheated once is innocent, being cheated twice is stupid!
I love this kind of stupidity as we are profiting from it. E.g. we took a quick 30% gain by shoring SPX when it was pushed up again during the day but quickly faded within hours. I was then going long with SPX when those stupid FOMOs started to chase again. You just cannot make it up and believe the widespread stupidity in this market!
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