With INFLATION being the hot-topic and the key factor on whether or not the FED will accelerate the TAPER talk, we remain cautious going into tomorrow.

CPI is the most relevant of the HIGH FREQUENCY DATA points. It has the potential to move markets significantly tomorrow.

We suspect that at some point, the readings start to recede, as we are on the camp that believes that INFLATION is TRANSITORY.

Tomorrow we get a bit clue on whether or not that thesis is correct.

We see to much BINARY risk in the event and remain nimble.