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The SPX was up around $58 just before the close today. The market loved the CPI numbers (I don’t see what there is to love about them; they came in as expected but 3.4% is still high) and took us right to the upper edge of the expected move.
Now, if you remember, last week we actually breached the expected move – mildly – to the upside. I think we’re dealing with something similar right now.
The upper edge of the expected move is the market’s happy place, and if we punch through it, we can expect the market’s big players to take us higher with their hedging.
You read that right – I’ll explain how it works and how to get ready for it right now.
