[WATCH] Closing Bell — A Slave to Inflation

By Murray Dawes, Saturday, 11 June 2022

In today’s Money Weekend…last night’s CPI figures…a large miss could ignite a huge move in markets in either direction…strong selling could return…and more…

In today’s Money Weekend…last night’s CPI figures…a large miss could ignite a huge move in markets in either direction…strong selling could return…and more…

The CPI figures released last night will create market direction for the foreseeable future. I shot the ‘Closing Bell’ video yesterday afternoon, so I don’t know whether they came in above or below market expectations.

But the charts are neatly poised at a point where a large miss could ignite a huge move in markets in either direction.

A hot CPI inflation figure could see strong selling return. Particularly, the ASX 200 is at risk of further downside now that the final pillar of the banks supporting the market has been knocked over with the 50-basis-point rate rise.

If CPI was below expectations, there is certainly the possibility that we see a sharp short squeeze in the short term, but it wouldn’t negate the overall bearish bigger picture.

I show you a detailed analysis of the setup in the ASX 200 and S&P 500 in the latest instalment of the ‘Closing Bell’ above.

Until next week,

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Murray Dawes,
Editor, Money Weekend

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.