US inflation was in line with our estimates and was stronger than market expectations. Ideally given the strong employment and growth in the US, this increasing inflation would support the FED increasing rates. However, the market seems to not care about good news. All it wants to do is panic. For the second day in a row, despite excellent fundamental data, risk appetite vanishes and risk aversion takes hold. It makes zero sense and lacks all logic. Despite being correct in forecasting all the data, which should support out trades, the market goes the complete opposite way and there seems to be no method to it. Even the standard correlations are being ignored.
If this persists into next week, will cut all open trades and take a net loss of $10,000 and stay out of the market until some semblance of logic returns, because at the moment there is no benefit in trading in a market that is just full of noise. If people are panicking now, I want to see how they will react when the FED does raise rates a few times this year, which it will….