PPI falls more than expected, confirming a chain reaction in inflation decline

Market Focus Analysis:

Pulse Focus 1: U.S. July PPI drops unexpectedly to 4.7%; core PPI also plunges to 4.2%.

Focus Interpretation: This is not an isolated single drop in data—CPI and PPI have declined together for the second consecutive month. PCE and non-farm payrolls growth have also seen significant declines over two out of the past three months. The fact of a cascading inflation slowdown has now been firmly established. Expectations for a September Fed rate hike have further diminished. However, short-term market risks remain tied to the Strait situation, prompting investors to avoid uncertainty over the weekend.

Asset Reminder: London gold has fallen from around 4450 back toward the 4300 level. This is currently a short-term base adjustment. Intraday attention should focus on potential rebound signals after liquidity sweeps in the 4300–4280 zone.

Plugin Case Examples

Gold: Yesterday, after the price broke through the yellow zone indicated by our plugin, it triggered a rebound. Although the profit-loss ratio did not reach double, a one-to-one gain was achieved. Today, continue monitoring the yellow zone below 4300 for sweeping movements and watch for reversal signals. For detailed positions, please consult the plugin.

(Gold 15-minute chart)

Nasdaq: Our plugin signaled yesterday that a breakout above the blue zone warranted a buy-on-retest strategy. However, the price moved too quickly, leaving no retest opportunity. Today, above 30,000 points, the price has formed a new converging pattern; keep monitoring for momentum signals ahead of another breakout. For detailed positions, please consult the plugin.

(Nasdaq 15-minute chart)

Crude Oil: We maintain a trade setup for selling after a pullback following a rally. For detailed positions, please consult the plugin.

(Crude Oil 15-minute chart)

Key Financial Data and Events Today:

20:30 U.S. July Retail Sales
22:00 U.S. 1-Year Inflation Expectations