Hotter Than Expected PPI Numbers Trap Permanent Bulls

We came in hot, 6% v 5.5%. The producer prices don’t really mean that much and I am sure within a day or two — the market will forget all about it. But for now, stocks are diving lower and rates are +5bps to 3.86% and Wall Street, all of a sudden, is scared. The Vix is +9%.

We had a real nice market going as of yesterday — but now it’s over. Again.

What to do? Do we hedge heavily or wait for the market to possibly turn up and then sell?

For now, I am holding only long — taking the hits and feeling the pangs of calamity — down 2.7% for the session.