7:00am (NY Time) CA Core CPI m/m Forecast 0.1% Previous 0.0%
CPI, Consumer Price Index, is a statistical estimate of the movement of the prices of goods and services bought for consumption purposes by households. Its computation uses price data collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times and estimates of the shares of the different expenditures in the total covered by the index which are usually based upon expenditure data obtained for sampled periods from a sample of households(wikipedia). It is also known as the “True Cost of Living”.
The Core CPI figure was at 0.0%, which didn’t really hit our trigger… as a matter of fact, market went the opposite direction, pretty much against convetional wisdom, but because of this same reason we stay out of trades like this to avoid getting killed by news releases. It is a no trade, but if you got the time to watch this video, you should as I also explained some fundamental and technical factors that may help in your understanding of news trading.