would you be short tuesday night?

For the rest of the wek....

Big moves will be decided once PPI & CPI numbers are released. .


The inflation concerns will be in full focus Tuesday, when the producer price index for April is released. Economists expect the PPI, which measures price pressures faced by manufacturers, to show a rise of 0.7%, after 0.5% growth in March. The core PPI, which excludes food and energy, is expected to rise 0.2%.

Two more of the Fed's favorite figures, capacity utilization and industrial production, both for April, also will be in the mix Tuesday.

On Wednesday, the inflation conversation continues with the April consumer price index numbers. Economists anticipate the index rose 0.5% after a 0.4% increase in March. Minus food and energy, the core CPI is projected to have grown 0.2%, below the 0.3% rise the prior month.

"The PPI and CPI reports will be the most watched reports next week," says Robert Pavlik, chief investment officer at OakTree Asset management. "Just last week, the Fed stated that the run-up in the price of energy and commodities have had only a modest impact on core inflation. If these numbers come in way above expectations, Wall Street would likely see a serious selloff."

We are in for a big week.