Monday, September 27, 2021

Two big things to watch this week

These two will tell us a lot
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Hey There!

Somehow, it's already Monday. What a weekend!

Did you have a good time?

It's starting to rain a lot here (I know, rainy in Seattle? Big surprise, huh!) but other than that, we enjoyed it.

Every Monday, it's a good idea to look at the U.S. economic calendar. These are easy to find with a simple google search.

And as I scan the week ahead, two events really jump out at me.

Let's chat about them!
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On Tuesday at 10 AM, we'll hear about the Consumer Confidence Index, or CCI.

CCI is simply a survey, administered by the Conference Board, designed to gauge how investors are feeling about the economy.

The idea is, if investors feel good, they'll spend more money. If confidence is low, it could be a sign of an economic slowdown.

In August, Consumer Confidence fell to a six-month low of 113.8. It's hard for me to imagine we see a strong surge for the month of September, but anything is possible.

If consumers are worried about the economy, though, then Friday's report isn't likely to help them!

On Friday at 8:30 AM, we learn about core inflation.

Now, core inflation is interesting, because it measures inflation in the cost of goods and services, but does not include inflating prices in energy or food.

Since energy and food are so much of where we've seen inflation lately, it's possible that this news isn't all that bad.

But if this is a higher-than-expected number, then all bets are off.

The Fed can only go on ignoring inflation for so long before they are forced to act and act swiftly.

And when they introduce tapering measures to slow down inflation, investors are likely to believe that will slow down the economy, too, and the markets could tank.

Not saying all that happens this week. But it's important to watch these key numbers and stay prepared.

I'll be watching them. Hoping you have a great week!

Happy trading,

Markay
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