Comments: Despite the negative reaction among Gold traders, I believe that today's PPI report is positive for Gold. Although overall Producer Prices fell by the largest amount in 20 years, the core PPI, which excludes energy, rose an unexpectedly high 0.6%. This means that the inflation has risen notwithstanding lower energy prices. Now if oil can stay above $60, we could be in for some pretty "decent" inflation readings, at least from the perspective of Gold. Ofcourse, unfortunately, it's unclear whether traders are now afraid that high inflation readings will lead to higher interest rates and thus lower Gold prices. Things are very mixed up right now. Usually inflation is very Gold positive, but in the short term, it's unclear how traders would react to elevated inflation readings, given the Fed's alleged inflation fighting stance.
Comments: Right on cue (Q?), the QQQQs look like they're selling off hard after hitting the downtrend resistance. Gap down on pretty hefty volume should mean that I might get some play on my QQQQ Puts after all.
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