Inflation Week

Every third week of the month is when we get the Producer Price Index and the Consumer Price Index numbers and hence, Inflation Week (see economic calendar). This week, however, focus would probably not be as much on inflation as it will be on the Empire State Index on Monday and the Leading Indicators on Thursday. A recovery in both numbers could signal a bottom to this economic slump but chances are that we would probably still get multi-year bad numbers this time round. Going by the market action last week, a significant number of investors are betting on a bottom right now and with the numbers still expected to get worse, these investors might be disappointed to the point of producing that final capitulation that I have been talking about for weeks.


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