INFLATION RE-EMERGES; FED 50BPS HIKE BACK ON THE TABLE ***

We cannot reflate markets without reintroducing inflation back into the mix, as long as jobs are still enjoyed. In order to finally defeat the inflation boogeyman, which came out nowhere at all (God only knows how inflation happened in this country!), we need to once and for all get you fired from your jobs.

The CPI came in HOT at 0.6% v 0.5%. On the surface you’re like “oh no big deal” but it is actually the “biggest deal ever” because governments are toppled by angry mobs with pitched forks who do not like the prices of eggs.

Listen to me: The market had gone up in January based on the premise of a pivot and a pause and possible interest rte cut. Now we are looking at 50bps for May and rates exceeding 6% by summer.

We might see a resumption of the long commodity trade/short stocks — providing geopolitical events worsen. And, we might see risk averse stocks bid as the proles roll out of growth and back into the confines of security.

Either way, we DESERVE to be down more than 500 NASDAQ today, so be careful about buying dips.

I hedged fully and am now net short, 40% allocated into SOXS/SQQQ on top of a 100% long book — down 1.2% for the session.