The nervoursely anticipated CPI came out higher than expected (+0.3% vs +0.2%) for January at 8:30 AM. Stock futures dropped 1% after the news. I expected the selloff to continue since the recent correction was inflation related. The prices recovered more than a half before market open. After the struggles of bulls and bears market turned up to the positive territory. The three majors gained 1.3-1.9% at closing. VIX dropped 23% and closed at 19. It looks like the fear of inflation is under control so far. Technically the majors have only pulled back to their 50% retrencement. At the Fib levels there could be another round of selling.
Made 10 trades today. Sold some RUT and SPX late March calls for my clients on the push up. I didn't take them for my account due to concerns of margin. I already have too many bear calls. The rest of them were hedges and exiting positions.
Net liq didn't change much. Margin is till on the put side and the ratio is above 60% now. It's monthly expiry tomorrow. Expect some pushing around. I have a SPX near the money put to watch. Will try to close it instead roll out.
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