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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 674.96+0.9%4:00 PM EST

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To: NickSE who wrote (17891)6/19/1999 12:47:00 PM
From: Haim R. Branisteanu  Read Replies (2) of 99985
 
Nick, thanks for the links. I am not sure which index the bond traders are following but based on GSCI definitly the CPI/PPI does not reflect the rise in prices, I think it mimics more the CRB.

Now we have substantial service inflation which is not reflected in any of those indexes.

Buy gauging the inflation rate based on steady service & housing cost inflation (forget the 5% rise in housing & medical care) <G>, the PPI and CPI are not consistent with the rise in the GSCI and relative flatness of the CRB.

So something is wrong with the government calculation and I think the Bond market knows it and therefore failed to rally wen the CPI was released and waited for AG who played a number on them <G>.

BWDIK
Haim
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