To The Moon

Flash comments for CPI: The CPI increased 0.1% in August. Excluding food and energy, the inflation gauge increased 0.6%, both higher than expected.

Energy prices fell 5% for the month, led by a 10.6% slide in the gasoline index. However, those declines were offset by increases elsewhere.

The key problem is Core CPI. The core CPI rose by 6.3% year-on-year (up from 5.9% in July) and 0.6% month-on-month.

The food index rose by 0.8% in August, and the cost of housing, which accounts for about 1/3 of CPI, jumped by 0.7%, up 6.2% from a year ago.

In addition, medical services have also increased substantially, mainly due to labor costs; New car prices also rose, up 0.8 pc, although used cars fell 0.1 pc.

It is worth mentioning that the electricity cost increased by 1.5% month-on-month in August and 15.6% year-on-year, which may be the most unexpected.

As I mentioned last night, both of options successful! Whether options strangle for QQQ , or Sell Call at SPY. Please read here 【Options】How to trade tomorrow's CPI?

What is next?

​$S&P 500(.SPX)$ probably drop to make up for the gap left last Friday (near 4010).​But don't forget, it is quadruple witching on Friday, and there is opportunity to do strangle this week! However, note that the options IV will be pushed up due to the stock price collapse in the opening period, which is not the best time to buy strangle.