[Weekly Syrup] CPI not too bad. Wait, what to buy?

Stocks ended Wednesday’s session on a higher note as we got yet another soft inflation data.

The latest CPI showed that the US inflation falling is falling, which gives market and the Federal Reserve a further boost for a rate cut in Sep.

The carpet is laid out nicely for the Fed

Meanwhile, S&P 500 has recovered and recouped all the losses from its 5th Aug’s sell off.

so at least my consistent posts on this forum , have had a pretty good strike rate ( right now its 100% - that probably wont last)
here is my hypothesis ,2 major triggers for an nvidia rally
1) now with cpi, ppi , employment data out of the way - bond yields become less attractive as fed is likely to cut 25 BPS
2) pre nvidia earnings - you already heard from the hyperscalers about the AI investment , this company is one of those generational company - if the guidance is good and earnings are brilliant - dont be surprised with targets of 175 to 200
so where will the money go ? yes a little bit to the iwm , but most of it goes to where the growrh is … broadly dont expect these levels again … unless something dramatically different happens
if nvidia is trading at 180 , you would think 130- 140 is a good deal!