📈 GM Munchers! This is Pip Munch, your trading newsletter that’s here to help you make sense of the chaos—because wow, today’s CPI report just turned up the heat. 🥵 

On today’s menu:

• Inflation Spikes, Gold Shines, and the Dollar Wobbles 💥

• LIVE WEBINAR: Make Your First $1,000 with Prop Firms 💰️ 

• Is Russia About To Start Buying Bitcoin? 🇷🇺 

• Argentina Ends Their Deficit After 123 Years 🇦🇷 

Inflation Rises Again: What’s Next for the Markets?

Here’s the scoop: Inflation just came in at 2.7% year-over-year, rising for the second month in a row.

And guess what? Markets are already losing their minds.

But don’t worry—I’ve got you covered.

Let’s break it all down, figure out what this means, and share what I’m doing to trade it (spoiler: I’m sweating a little).

The CPI Breakdown: Inflation’s Still Sticking Around  

Today’s number? 2.7%.

• This marks the second straight month of rising inflation, and it’s not exactly the news we wanted to hear.

• Bond yields are holding steady at 4.22%, because apparently, the bond market is the only one staying cool under pressure.

But here’s the kicker: Despite the rising CPI, Polymarket is still pricing in a 97% chance that the Fed cuts rates by 25 basis points next week.

Yes, a rate cut while inflation is ticking up. Makes total sense, right?

What This Means for the Fed 🏦

The Fed’s job just got a little trickier.

• On one hand, inflation is still above their 2% target.

• On the other, the markets are screaming for relief—and betting big on three rate cuts over the next seven months.

So, what’s the likely play?

• A 25-basis-point cut next week to keep everyone calm.

• After that? It’s a balancing act between managing inflation and keeping the economy from imploding.

How the Markets Are Reacting

Here’s where things get interesting:

• Stocks are shrugging it off. The S&P 500 is riding high after a 6% gain in November, like it’s completely unbothered.

• Gold (XAU/USD) is starting to shine again—rate cuts tend to boost the yellow metal, and I’m keeping it on my radar for a breakout.

• The dollar (DXY) might weaken if the Fed cuts rates, setting up some juicy opportunities in FX pairs.

Oh, and don’t even get me started on Bitcoin. If inflation, rate cuts, and volatility had a love child, it’d be BTC right now.

What I’m Doing as a Trader

Here’s my game plan for navigating the madness:

1️⃣ Staying Focused on Gold

I’ve been watching XAU/USD like a hawk, and with inflation rising and rate cuts looming, it’s looking ripe for a move.

Historically, gold averages a +11% return after rate cuts, so I’m keeping my setups tight.

What I’m doing: Setting alerts at key levels and waiting for high-confluence setups. No chasing shiny things (literally).

2️⃣ Watching the Dollar Like a Hawk

If the Fed cuts rates, the USD is likely to weaken—and that’s where FX pairs like EUR/USD and USD/JPY get interesting.

What I’ve learned: The dollar moves fast during rate cut cycles. I’m planning for volatility and keeping my stops tight.

3️⃣ Not Falling for the Stock Market’s Chill Act

The S&P 500 is up, and everyone’s acting like we’re in the clear. But here’s the thing: volatility spikes after rate cuts. The next 90 days could get wild, with returns ranging anywhere from -20% to +40%.

What I’m doing: I don’t trade stocks. I’m a long term holder. So unless I see any juicy discounts (maybe MSTR 😏 ), I’m not doing anything — no YOLO trades here (learned that the hard way).

Why This Is a Big Deal

CPI rising while the Fed preps to cut rates isn’t just market-moving—it’s a reality check.

Inflation isn’t going away quietly, and the Fed’s moves will ripple across every asset class.

Here’s the bottom line:

• For traders, this is prime time. Volatility means opportunity—but only if you play it smart.

• For investors, buckle up. Rate cut cycles tend to bring wild swings, and 2025 is shaping up to be no exception.

Final Thoughts

Inflation’s rising, the Fed’s cutting rates, and I’m over here just trying to stick to my plan.

The key?

Don’t get caught up in the noise.

Use the volatility to your advantage, but stay disciplined. The next week is going to be wild—and that’s exactly how we like it.

Cheers,
Matthew 📈

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☕️ Pre-Market Fuel

1. Is Russia about to create a strategic Bitcoin reserve? Let the games begin! 🇷🇺 

2. Microsoft shareholders voted yesterday on whether or not to buy Bitcoin for their treasury. They voted against it.

3. Argentina ends their deficit for the first time in 123 years. The US and Canada should take notes… 🇺🇲🇨🇦 

🍪 Munchy Memes

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