PPI Market Review August 13, 2026 transcript

All right, folks, how are you? All right, folks, welcome back. Going to be a real short one. I have a serious sinus headache and it's not letting go, so I'll make this as brief as I possibly can. >> [sighs] >> I'm coming back later to see you then after everything closes. I'll try, but no promises, but we have a daily chart here on the Nasdaq, left-hand side. And this is what we had yesterday at close. And I want you to take a look at these bodies.

See how smooth that is? I talked about this this week. Okay, so when the reverse is like that, it's basically like SWAT teams ready to bust through anytime. Okay? And we failed to go lower beyond the scope of what I was suggesting as a downside objective. We got to that downside objective. And up until the CPI number yesterday, I had no intentions of looking for anything higher. But this morning, when I woke up, I saw that we had everything in in motion that set it to Wednesday's high, maybe last week's high.

And then if it would have been a little bit slower-paced run this morning, it was very quick out the gate at 9:30. Um you have these relatively cool highs here. And then we have this old inefficiency here. But this one here, you should have already seen this on your own chart. This should have been obvious for you. But it was so far away from down here, it wasn't worth mentioning yet. And so the next candlestick here, you see we trade all the way up into that.

We bust through these relatively equal highs. We leave these bodies right here. And as we approach the 8:30 PPI number, I had expected this. And then I mentioned in a chart. See how we had this like pseudo diagonal trend line stuff. I like to look for this kind of stuff. And then like this right here, the midpoint. I called for this as a suggestion to see if we could get below that this morning on the CPI number. I'm sorry, for the PPI number.

And it started off like it was going to make an attempt to do so, but once it got below here, it was it. It wasn't interested going in. Now, I'm of the opinion if I wouldn't have said that, it would they would have went down there. You can you can argue and wrestle with me in the comment section. You're welcome to your opinion, okay? But I've been around the game long enough to know that that would have been highly reasonable for it to go down there and take that out.

And then go up to Wednesday's high. Okay, so Wednesday's high, you'll see it over here. That's what I suggested. So, on the 50-minute time frame, go down to go up to clear 30,000. Okay? So, that's what I was looking for. And then when we created the 8:30 on here. Let me maximize this chart, okay? These are trend lines. Not that I like them. I just like looking for them to be victimized. We have the 8:30 candle here. And we're on a 1-minute timeframe.

So, we opened, ran all the way up, came back down. We basically swept Tuesday's previous day high. Or Tuesday, 2 days ago's high. Then came back down and then we had this weird like structure in here that I felt that it was going to likely come down, at least take out this low. And even if it failed to go lower, that would have been enough to warrant you know, a partial. I went in. I was looking for a short to sell and then buy it back at the low or very close to the low.

And then hope for Wednesday's high to be taken out. And then maybe trail something if it allowed for it, but it would only be like one or two contracts being trailed. As a runner, basically. And it started showing an unwillingness to want to go lower. So, I collapsed the position, went long. And then we have this buy side imbalance sell side inefficiency. So, we have this high here. Thought it could draw up into that.

At this portion of the fair value gap open and let's just I'll show you. See it? There. And this is how far it went in. So, from there to there, that that portion remained open. But the gap is defined by that. So, institutional order flow entry drill using last Friday's daily high. So, it's a key PD array. Rallies up. Order block trades into it. They are changing the state of delivery. Rallies up. Once it starts taking out this high, I peeled off portions of the long.

And then I trailed the stop loss up to right below these lows in here. And it came down, hit it, and then traded all the way back down into my fair value gap there. You can see it went down the consequent encroachment. Strong long here. This is the PD array also that I was utilizing. See that big wick? So, if you're looking at this, that's that's fine. But if there's a wick to the left, you got to be mindful of that.

Okay? And you can see that we'll look at the 50% level. And we'll prod that up with that. Give me the body stop right at the halfway point of that wick. I guess it'd be easier if I took it all off except for just the consequent encroachment level. My head is hammering. So, we have this midpoint here. You can see the body's respecting it as well. And look at that. Isn't that brilliant? Comes right down, touches last Friday's daily high, and then goes down the consequent encroachment of my buy-side imbalance sell-side inefficiency fair value gap.

Then it rips higher. So, just above this midpoint, ideal entry. Down into the gap, anywhere in there is a good fill. Rips higher. I I measured Tuesday's daily high up to Monday's daily high and that's half this. As you can see that right here being measured from there to there and that's just the 50% level. So, that's event horizon. Trading through that really didn't get an opportunity to close off anything there. And then Monday wonderful partial taken there.

Wednesday's high taken there and then it ran through. Came back down, utilized Wednesday's daily high. Almost consequent encroachment of the wick. Let's measure it just for Look at that. Isn't that pretty? So, the wick's consequent encroachment lays directly on top of Wednesday's daily high and that's probably random. And we rip higher taking out last week's daily high. Ran up through feeling stops is warranted. We get up into this area here.

And then I make a public announcement of 30,120 my stop. And there [clears throat] it is. Slink. It never comes back down here again. This keeps going higher and higher and higher up into there somewhere I would have taken my last portion off if if it would have let me. And then I would have missed all this little bit of move here. Totally did around here. Octane. Lowest octane. Trades lower. Relative equal lows. Back to consequent encroachment of that bearish fair value gap on the daily chart.

And we're just hammering around in here. Okay, so pretty eventful day. Um this line is where those bodies were on the daily chart. Let me show you. If we go up to the daily again, I'll zoom in. Relative equal highs relative equal highs right there. And that's the 30,094 even level. That's what that is. See that? So, once it cleared that, I didn't have any interest in seeing it come back down into it. And then chased up as far as I could, but 120 takes you out of the game here on that candlestick for me.

And I was the old me part of all this run. That's that. Um I don't want to hold any hard targets for the rest of the week. If it's going to continuously be bullish uh next week, we could be looking for right up in here. So, this is all too smooth. So, around 30,975 half. And then I obviously have the old highs. So, new ti- new all-time high. It could be in the making. I'm not going to go so far and say that's what it's doing.

But uh for now, this high and then these relative equal highs here. So, let's put a line the short-term high. And then wrap this video up. So, 30,000, we'll call it 600. 30,600 and then 30,975 half uh are the objectives on the upside. I'm not interested in being short. I'm not interested in taking any more trades. And I'm probably just going to go and try to fall asleep for a little while. Have yourself a pleasant evening, day.

Uh be be careful tomorrow, Friday. I probably won't be participating anything online. If I can come up with something for a lecture, I'll try, but again, no promises. Enjoy weekend and talk to until I talk to you next time. Be safe.