A.M. Observations

The overnight session was pretty quiet both in ES and macro data with a few exceptions that don't mean much to us. It was CPI out at 8:30 this morning that got the market moving finally.

 From yesterday's 4 p.m. print of 1785.50, the 8:30 CPI (retail sales as well) data sent ES higher in pre-market.

Unlike the inflation causing QE2 that squeezed corporate margins, QE3 has not done the same, in fact CPI came in at a decline or deflation on a month to month basis. Y.O.Y CPI is down to 1.2 from 1.5 in August, core came in at 1.7 vs 1.8 in August,, but the headline was the lowest CPI since this time 2009. Of course Energy and Gas costs were up, .8 after a decline of -.3 in August for the first and gas +.8 after -.1 in August.

Thus ES ramps as the F_E_D is not restrained by inflationary pressures.

Retail Sales came in strong, up .4% in Oct vs 0 in Sept.

Gold saw a no news a.m. smash down, this is the 3rd odd event on no news that caused the CME to halt trading for 20 seconds, in London regulators are investigating London gold benchmark manipulation.

Today it was 1500 contracts, who sells 1500 contracts at once? It seems only someone who is purposefully trying to move the price of gold. We'll check on it later this morning.

Other than that, not much has changed from yesterday.

I will note as I have already several times, a massive double POMO on Monday did nothing after a POMO last week also saw the market close red, then Bernie and Yellen were out jawboning yesterday and the markets still close red. My question still stands, "Is QE losing its luster?"