John CAD
3.4K posts

John CAD
@GetAlongGoAlong
I started a new account to get rid of all the unproductive X noise. If I decided to follow you, congrats, it means you’re not full of shit












Monthly PnL for July 2021: (-$2,672) Down 3% overall, great lessons to be learned this month in some of the choppiest action I've experienced. Not looking to get cute next month & make it all back on one trade. Just looking to follow my process, and trade well. Cheers HAGW🐢🍻


A chart shared with me by @sirralphie2k yesterday, then a post by @yieldsearcher and another chart by @axbkol got me doing a deeper dive on this subject. The attached chart is helpful for understanding how inflation is moving through the supply chain and the volatility of producer vs. consumer prices during energy or commodity shocks. Producer prices are rising faster than consumer prices (typically a sign of margin pressure on businesses). When the line is deeply negative, businesses are often getting squeezed because input costs rise faster than they can pass them on to consumers. Producer prices (upstream) usually lead consumer prices, so big negative moves like we’re seeing now can precede CPI cooling. Yes, I know that seems counterintuitive to what almost everyone is saying right now. Additionally, these moves are often lagging the actual economic stress, driven by the same forces causing recessions (commodity swings and demand destruction).


















