The author argues that going long the Nasdaq against an equal-sized short S&P 500 position is a good CPI-day trade because the print will likely cause a big move if it deviates from expectations. The mechanism is a relative index move of 1.5-2% on the print, with a 0.5% stop loss limiting the downside. The main stated risk is that the move only materializes if CPI is not exactly in line with expectations.
The author pairs a long Nasdaq position with an equal-sized short S&P 500 to profit from index divergence around the CPI release. The trade is expected to gain 1.5-2% on the print regardless of overall market direction, protected by a 0.5% stop loss. The stated risk is that CPI comes in exactly at expectations, removing the catalyst.