PPI Is the Inflation Number That Hits Factories First
Most people know the Consumer Price Index. That is the one that tells you why groceries and rent feel expensive. The Producer Price Index is the quieter cousin. It measures what American companies charge each other before those costs show up on a supermarket shelf or a utility bill. On Thursday the Bureau of Labor Statistics put out the August numbers. Headline PPI for final demand rose 0.4 percent from July. Over the past twelve months it is up 5.4 percent. That is faster than July’s revised 4.8 percent and a touch hotter than the 5.3 percent most economists had written down. The monthly move itself was not a shock. The mix inside it was. Goods prices jumped 1.1 percent. Energy did most of the work. Final-demand energy rose 4.2 percent in a single month and accounted for more than three-quarters of the entire goods increase. Diesel fuel alone soared 24.1 percent. Gasoline added another 4.2 percent. When truckers and factories pay that kind of jump, it does not stay in one corner of the economy for long. Services were calmer. They rose just 0.1 percent. Transportation and warehousing climbed 2.3 percent, which is exactly what you would expect when diesel is ripping higher. Trade services actually slipped 0.2 percent. Strip out food, energy and trade and you get a 0.3 percent monthly rise and a 4.7 percent year-over-year rate. That “core” reading is the one Fed officials stare at when they try to decide whether inflation is broadening or just riding an energy wave. It is still too high for comfort. Think of PPI as the early warning light. A manufacturer pays more for steel, chemicals or freight this month. Next month the wholesaler feels it. A few months after that, the price tag in the store moves. It does not happen one-for-one, and sometimes companies swallow the cost. Often they do not. That is why markets treat a hot PPI print as a hint about where CPI might go. The August report arrives at an awkward time. Energy markets have been jumpy, and wholesale inflation is running more than twice the Federal Reserve’s 2 percent target. A 0.4 percent monthly gain will not, by itself, force an emergency rate decision. A string of them would. Diesel at these levels also feeds straight into shipping costs, which eventually touch almost every imported or domestically hauled good. PPI is not a perfect crystal ball. It misses some consumer-facing services, and energy can reverse as quickly as it spikes. What it does well is show pressure building on the factory floor and the loading dock before households see the full bill. Right now that pressure is coming from energy, not from a sudden explosion in every other category. That distinction matters. It does not make the 5.4 percent annual rate any less real.
Watching the three majors tonight and it’s the same story we’ve had all week.
BTC sitting around $79.2k. Keeps poking at $80k and getting sold. That $82k zone rejected it twice already this year so I’m not chasing a breakout candle here. Structure is still fine above the $72.5k–$73k EMA cluster, but until $80k actually holds as support this just looks like a range. ETF flow was strong last week, a bit mixed the last couple of sessions. Macro is noisy with hike odds still hanging around.
ETH is coiling right under $2,520. Same tape as BTC, just lagging a bit. $2,500–$2,550 is the obvious lid. As long as it doesn’t lose the $2,200s on a daily close I’m still treating dips as buyable, not a trend change.
SOL looks the cleanest of the three to me. Holding $103–$104 after that bounce off the June $70 area. $100 is the line I don’t want to see break. $108–$110 is the next supply. If BTC stays bid, SOL usually runs first.
Not financial advice. Size small, this market still likes to fake both sides.
Setups I’m watching
$BTC Bias: range / slight long Entry idea: $77.8k–$78.5k dip, or confirmed hold above $80.2k Target: $82k then $85k Invalidation: daily close under $76.5k Don’t FOMO the $80k wick.
$ETH Bias: cautious long Entry idea: $2,460–$2,490 hold, or reclaim $2,530 with volume Target: $2,620–$2,700 Invalidation: loss of $2,380 then the $2,200 EMA zone ETH still needs BTC to do the heavy lifting.
$SOL Bias: favorite of the three right now Entry idea: $101–$103 hold, add on a clean break of $110 Target: $118 then $125 Invalidation: daily close under $98 If $100 fails it can easily tag $91–$95.
I’m not max long anything into the Fed week. Prefer waiting for a dip into those demand zones rather than buying the mid-range. If $80k on BTC and $110 on SOL both stick, then the next leg gets interesting. Until then it’s just patience.
Not a “everything is pumping” day. Gold is sitting near $4,400 after failing the $4,450–$4,510 area, BTC is chopping under the $82k wall again, and the alts are just following Bitcoin. XAU (Gold) ~$4,390–$4,430
Still a two-way market. Buyers keep showing up under $4,370–$4,300, sellers keep fading $4,450–$4,510. Middle East headlines and oil are keeping the safe-haven bid alive, but the 21-day / 200-day cluster overhead is capping it. Setup Long only if it reclaims and holds $4,450. Targets $4,510 then $4,536. Short if $4,370 breaks and $4,300 fails. First target $4,285. Until one of those levels goes, it’s range fade, not a hero trade. BTC ~$78.3k Same story as last week. Rejected $81.5k–$82.3k, now sitting on $78k. Broader structure is still above the 50/100/200 EMAs, so this is a pullback inside an uptrend, not a breakdown… yet. Lose $76k–$77k and that changes. Setup
Long dip: $77.2k–$78k zone, invalidation under $76k. Targets $80.5k then $82k. Don’t chase a breakout until a daily close above $82k. That’s the level that actually frees ETH/SOL/XRP. ETH ~$2,470
Can’t hold $2,500. That’s the line. Above the major EMAs still, so structure isn’t broken, but momentum is tired. Setup Long only on a reclaim of $2,500 with follow-through. Targets $2,530 then $2,600. If $2,400 goes, stand aside. No need to catch a falling knife before CPI/Fed week. SOL ~$103 Best looking of the three alts on the 30-day bounce, but it’s still BTC-beta. $102 is the near-term floor, $107.50–$110 is the ceiling. Setup: Long on a hold of $100–$102. First target $107.50, then $110–$112. Cut if $97.50 breaks. SOL will dump harder than BTC if $82k fails again. XRP ~$1.39 Lost $1.40. Range is $1.35–$1.48. Needs $1.40 back as support or it’s just chopping. Setup Wait for $1.40 reclaim, then $1.47–$1.50.
If $1.35 breaks, $1.30 is next. Not the coin I’d force a long on while BTC is stuck. How I’d actually trade this week 1. Gold: range until $4,450 or $4,370 decides it. 2. BTC: buy the $77–78k hold, sell strength into $80.5–82k unless it closes above $82k. 3. ETH/SOL/XRP: no breakout trades until Bitcoin clears $82k. Size small. CPI and the Sept 15–16 Fed meeting can wipe both sides in one candle. Not financial advice. Levels move. Use stops $XAUT $ETH $SOL
UAI just tagged $0.76 on a vertical daily pump and is sitting way above the MA7 at $0.52. That $0.76 wick is the level I’m fading… if it fails to hold, $0.64 then $0.51 are the next areas I’m watching.
A lot of green still across the board, so I’m not chasing this long. Letting the high reject first.
BTC, ETH and ZEC into the week. Three very different charts right now.
BTC is still the boss, but it’s not running. Price is sitting around $79.3k–$79.5k after getting smacked off the $80.5k area. Weekend pump, Monday fade. Classic. Trend on the daily is still fine holding above the major MAs, RSI cooled from overbought into the mid-60s. That’s healthier than chasing $82k last week. Market just doesn’t want to give a clean break yet. Dominance still heavy around 59%, Fear & Greed in greed. So alts can move, but BTC decides if the bid stays. ETH is doing the same thing one level down. Stuck under $2,500–$2,560 after the August run. Not broken. Not exploding either. If BTC holds, ETH usually follows with a lag. If BTC loses $79k with intent, ETH goes first. Then there’s ZEC. This is the one people are actually talking about. Privacy coin ripped from sub-$500 in August to $1,200+. Week is like +45%. Grayscale ETF (ZCSH) is live, AUM already hundreds of millions, shorts got wrecked, market cap pushed into top-10 territory. That’s a real catalyst, not just a random pump. But let’s be honest daily RSI has been cooked. Moves like this don’t grind up forever. Either it pauses and builds, or it dumps hard on the first real BTC wobble. My setups. Not advice. Size small. BTC
Range is $78.5k–$80.5k until proven otherwise. I don’t chase the $80.5 rejection. If it dips and holds $78.5k–$79k, that’s the long I’ve been waiting for. Invalidation is a daily close under $77k. First target $82k, then we talk $83k. Lose $78.5k with volume and I’m flat. Simple. ETH Two ways. 1) Patient: buy the $2,430–$2,470 zone if BTC is stable. Stop under $2,400. 2) Confirmation: daily close and hold above $2,560. Then $2,700 is the obvious magnet. Stuck in the middle here is just chopping. ZEC This is the high-beta trade. Highest reward, easiest way to blow an account if you FOMO the top. I am not buying strength at $1,200 after a 45% week. That’s ego. Pullback I like: $1,100–$1,130. That’s where I’d scale a starter. Stop depends on your timeframe, but under $1,080 starts looking ugly. Breakout traders only: wait for a clean hold above $1,250–$1,315, then trail it. Don’t marry it. Privacy narrative + ETF flow can keep running, but extended is extended. If I had to rank conviction this week: BTC structure > ETH follow-through > ZEC momentum (but ZEC pays more if you’re right). One more thing. Payrolls came in hot, hike odds jumped. Crypto shrugged so far. That doesn’t last forever. If BTC loses $79k and can’t reclaim it, take risk off the alts first. ZEC will move 2–3x BTC in either direction. Watching $79k on BTC, $2,500 on ETH, and whether ZEC can hold four digits without turning into a wick factory. NFA. Do your own levels. $BTC $ETH $ZEC