a spent bullet
market vibes
May 29…)
“You have to shoot in between heartbeats.” Chris Kyle
Data this morning includes GDP due -0.3% vs -0.3% last month, a key metric guiding the funding bill, plus inflation and jobs data at 8:30 AM. Pending home sales at 10 AM. CoreLogic reported month-on-month 20-city home prices edged lower yesterday.
In the news
Goldman says Trump has other options at his disposal to impose levies. He could apply Section 122 tariffs of up to 15% for 150 days or initiate investigations under Section 301, though those would take longer to implement. If all the pending investigations result in 25% tariffs and are added to current levies under the section, that would add 7.6 percentage points alone, they said via multiple AI sources.
AI queries concur; if Trump loses on final appeal, the US may be ordered to repay billions to exporters.
In other news, a wave of AI angst pounded Wall Street and other large companies who continue to fire mid-level workers. MSFT, McKinsey, and IBM were notable yesterday.“A white Collar Bloodbath.” (8 minutes)
In the markets
August gold traded abruptly down to its previous dominant POC at $3,270 (June = $3,240), which is also the bottom of value in this 30-day sample. The dominant POC in the 30-day is now $3,355. However, if Bloomberg permitted a larger sample, $3,270 would be equal in TPO count to $3,355.00.
My read is this dip was a shakeout of weak length, and the POC at $3,355 will pull it back up like a magnet. FWIW, Goldman Sachs strongly urged investors to buy gold yesterday as a hedge against inflation and oil to hedge portfolios against supply shocks. Other Wall Street analysts opined buying gold versus foreign or non-dollar derivatives might be better. This behavior is typical of ranges.
The tariff ruling offered an interesting glimpse of the weak side of the markets yesterday, lifting the veil for a few hours. Stocks, oil, copper, silver, and platinum rallied. Bonds and the dollar were mixed to lower. Let's take a look at each in turn and wind up with some thoughts on the game board …in the vibe.
