Every time a headline hits, whether it’s something about inflation or Fed Chair Jerome Powell clearing his throat, there’s a whole generation of traders who treat it like gospel.
Wednesday’s lower-than-expected PPI number is the perfect example.
Producer prices came in just a little soft … and suddenly, rate-cut fever was back on the table.
It was the kind of situation where the algos spike, the S&P gets a quick pop, and the CNBC crowd fires up the “pivot” talk for the hundredth time.
But smart traders aren’t chasing headlines. They’re playing probabilities.
Look, any single economic report is like a snapshot taken mid-sprint. You might see one angle of the story, but you’re not seeing the race.
Yes, PPI was a bit cooler, declining by 0.1% month over month, but let’s not ignore what’s actually happening under the hood:
- The labor market is still tight.
- Wage growth isn’t going away.
- The next CPI number drops today.
While the Fed isn’t going to pivot because PPI dropped slightly, CPI is a closely watched inflation indicator that could influence the FOMC’s rate decision next week.
But bouncing in panic from headline to headline is exactly how many traders get chopped to death — chasing every short-term pop, selling every tiny dip, and constantly flipping positions.
So, if you want to be more strategic with your trades, listen up.
Here’s What Pros Do Instead
They look past the noise.
They focus on what’s likely, not what’s loud.
They know that in a market like this, where one day it’s “soft landing” and the next it’s “stagflation is back,” chop is the base case.
So instead of swinging for home runs, smart traders get paid to sit in the middle of the mess.
And one of the cleanest ways to do that is with options spreads that benefit from chop.
The Big Lesson
Don’t get hypnotized by every economic release.
The market is a probabilities game, not a headline game.
One PPI number doesn’t change the trend, and the Fed isn’t making decisions based on a single print.
You shouldn’t be either.
Instead, trade the environment.
We’re in a choppy, indecisive market.
That’s not bad news; it’s a green light to start getting paid while everyone else gets whipsawed.
Let them chase the headlines while you stick to the probabilities.
That’s how pros win.
Stay street smart,
Jeff Zananiri
P.S. Want to see real trades, in real time? Friday at 4 p.m. ET, Danny Phee is walking through exactly how he’s attacking this market — what he’s trading, why he’s trading it, and how he’s staying ahead of the crowd.
Show up, dial in, and see how the pros get it done.
*Past performance does not indicate future results
