March 16 (Bloomberg) -- Prices paid by U.S. consumers rose 0.4 percent last month, paced by gains in fuel, food and medical care that highlight Federal Reserve concerns over inflation.
The increase in the consumer price index followed a 0.2 percent January rise, the Labor Department said today in Washington. Core prices, which exclude food and energy, rose 0.2 percent and were 2.7 percent higher than a year earlier.
Initial reaction was a slight bounce for both gold and equities, although the latter remain in the red. NQ still has that 10 DMA hurdle at 1761. The only hope for stocks is a rate cut. Help might also come from option traders pinning QQQQ 43, the theme of the week it seems. All bets are off if NQ loses 1754.
Gold is heavily manipulated, but the indiscriminate rush to cash for all assets seems to have abated and in the case of gold it was a buying opportunity, I think. The danger for the metal today is a strong consumer confidence number, but that is why we have stops.
The increase in the consumer price index followed a 0.2 percent January rise, the Labor Department said today in Washington. Core prices, which exclude food and energy, rose 0.2 percent and were 2.7 percent higher than a year earlier.
Initial reaction was a slight bounce for both gold and equities, although the latter remain in the red. NQ still has that 10 DMA hurdle at 1761. The only hope for stocks is a rate cut. Help might also come from option traders pinning QQQQ 43, the theme of the week it seems. All bets are off if NQ loses 1754.
Gold is heavily manipulated, but the indiscriminate rush to cash for all assets seems to have abated and in the case of gold it was a buying opportunity, I think. The danger for the metal today is a strong consumer confidence number, but that is why we have stops.
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on Friday, March 16, 2007 at 3/16/2007 08:37:00 AM.
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