"Raise Inflation" Drums Beat Louder as Powell Speaks Today

What to Watch for From Powell and Pals

Good Morning: The dx is up 56 points. Bonds are slightly stronger. Stocks are all up small with the Dow performing best up 42bps. Gold is on either side of unchanged depending on when you look. Silver is up 6 cents. Oil is up $1.00. Copper is up 75bps. Grains are mixed with Corn being the laggard. Crypto is down very small.

Last 24 hours: Gold Firm, Dollar Firm, Bonds slightly firmer, Stocks choppy soft…

Most markets are in holding pattern awaiting Jerome Powell’s 10am speech today.

The markets, as evidenced by recent put buying (alot), stock prices (very weak), and Bond prices ( disaster) are getting the point that Powell is going to continue to keep his powder dry with regards to committing to a full stop in rate hike terms. This is important because today is not about data released. It is about dependency on every word Powell says.

What to Watch For.

What we are looking for outside of the norm. There is no material way to handicap how a word or phrase will be taken. But there are some things on our radar that, if mentioned, means they are on *his* radar, and that would signify an emerging trend taking hold.