Playback speed
Share post
Share post at current time

"There's No Lid on These Markets Anymore"

Speed is a different story

Housekeeping: Good Morning.

Gold Revaluation is a Process, Not an Event.


Markets Yesterday:

US equities rallied on Wednesday after the latest CPI report showed inflation eased in April


  • Silver: Highest Close in 11 years. Macro discretionary money criteria

  • Gold: Hovering below $2400 with no real selling, just patient buying that gets impatient periodically- Measured moves

  • Copper: Raises awareness to the potential problems in Silver- Comex is toast

Market News: Thematically Speaking

Politics: “The consumer price index rose 3.4% in April from a year earlier, a decrease from 3.5% in March, according to the Bureau of Labor Statistics. Source: CNBC- Next 2 months will be likely much much lower

Liars: "McDonald’s plans to sell a $5 meal bundle this summer as the burger giant seeks to hang on to cost-conscious consumers, and rivals increase promotions." Source: WSJ- raise prices then sell new products downstream

Deglobalization: "Warren Buffett’s Berkshire Hathaway unveiled a big investment in Chubb, one of the world’s largest publicly traded property-casualty insurers... was most recently in the news as the insurer of the collapsed Francis Scott Key Bridge in Baltimore." Source: WSJ- global is key

Cold War: "New US tariffs on Chinese goods are set to redirect shipments to Europe and put increased pressure on Brussels, which is scrambling to avoid being caught in the trade war between Washington and Beijing." Source: FT- Mercantilism makes non-ideological alliances.. japan

MMT: "Federal Reserve Bank of Minneapolis President Neel Kashkari repeated the central bank likely needs to keep interest rates at the current level for “a while longer,” and questioned how much they’re restraining the US economy." Source: Bloomberg-

"In a sport where teams will look anywhere for a competitive advantage, baseball’s latest search for an edge has led to the catcher position…”

Geopolitics: Circling the Drain

  • Israeli PM Netanyahu rejected US calls for a post-war plan in Gaza, while Arab governments have rejected the idea of establishing an Arab-led civilian administration in Gaza, according to WSJ.

  • Hamas's chief said the fate of truce talks is uncertain as Israel insists on occupying Rafah crossing, according to AFP News Agency.

  • Lebanon's Hezbollah launched drones at a military base west of Israel's Tiberias in the deepest strike into Israeli territory thus far.

  • Massive Israeli airstrikes were reported in Baalbek, Lebanon, according to Kann's Amichai Stein.

  • Islamic Resistance in Iraq said it launched a drone attack on a “vital” target in Eilat, southern Israel, according to Iran International.

  • Chinese President Xi said in a meeting with Russian President Putin that China will always be a good neighbour, friend, and partner of mutual trust with Russia, while he added China is ready to work together with Russia to achieve development and rejuvenation of our respective countries and uphold world equity and justice. Furthermore, Russian President Putin said Moscow and Beijing have acquired solid baggage of practical cooperation and Russia-China cooperation stands as a stabilising factor for the world.

  • Ukrainian military said "intensive" enemy fire prompted the move of some troops to new positions in the Kupiansk direction, east of Kharkiv.

Some headlines via NewSquawk or DataTrek

Data on Deck: PPI then CPI

  • MONDAY, MAY 13 speakers

  • TUESDAY, MAY 14 8:30 am Producer price index April

  • WEDNESDAY, MAY 15 8:30 am Consumer price index

  • THURSDAY, MAY 16 Initial jobless claims May 11 219,000 231,000 8:30 am Philadelphia Fed

  • FRIDAY, MAY 17 10:00 am U.S. leading economic indicators April1


Precious metals: After a mild respite in the last two weeks, gold’s stunning rally is back on track with prices back north of USD2,300/oz (despite the higher-for-longer rates and US dollar environment (which traditionally predicts falling prices).


This post is for paid subscribers

Capital markets recap, commentary, and analysis for evolving traders