Nothing changed for our bullish position today. It looks like we got a Bearish Harami candlestick pattern, but yesterday's Open was 191.95 and today's Close was 191.75, so that's not a valid pattern. Also, we closed over the 8ema.
I think we just gave some respect to the 20sma but as of today's trading, its inconsequential. So, we held our position.
Tomorrow morning at 8:30am ET we get the monthly US CPI (Consumer Price Index) report. That's rated as a High Impact report and will likely move the markets one way or another, if its not close to the expected number, which is .7% for CPI and .5% for Core CPI.
I considered getting a hedge or even exiting the position today, before the report comes out, but decided not to because of 2 reasons:
I think its very likely to be higher than expected. If so, I'd expect that to be bullish for PYPL because in inflationary times, consumers spend their money faster since their purchasing power is eroding quickly. And it seems very unlikely we'll get a low inflation number.
If the report comes out as expected, then it will have no effect on stocks and we can follow our Technical Analysis, which says its not yet time to sell.
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