Nah, it wasn’t the CPI print that moved markets. 

As presented pre-market to clients:

“So many think it’s the tiny beat in CPI - I detail the data today against the 44-month long trend in above 3% CPI - in my premarket review. No, it is not CPI that caused yen, bonds and stocks to bounce: It is very clear in my mind that it is:

1. ALGOS: reacting off the tiny CPI beat - as we gapped exactly above the gap in SPX 5905 from JAN 10th.

2. HEDGES: from ES futures where large buyers of puts added yday in size driving up the put:call ratio 3:1 - that are now unwinding.

3. BANK BEAT: from sentiment that banks beat in their earnings announcements pre-market, relieving market of immediate worry on their performance and consumer spending as sign of economic strength.

4. BOJ: which triggered the Yen to bounce which is driving the bounce in bonds, which is pulling down US dollar and yields, which is fueling the move higher in stocks. Specifically, Bank of Japan Governor Ueda said last night that they are considering a rate hike and this month's meeting is live, increasing the chances of follow through. JGB 10Y yields had already front-run this potential - moving from 1.1% JAN 6th to 1.26 today. AND exactly as I warned would be the reason for the yen, bond, stock bounce. 

AS POSTED YDAY IN #TRADING-ROOM-NOTES
(See below image)

5. DXY:10Y RATIO: dumped on cue as warned because of dollar but especially yields falling. 
(See before/after images.)

AND that $TLT trade? It isn’t a nickel anymore 🙃
($1.85 = 3600%🤗)