evening wrap, october 27
market vibes
The Three Stooges explain reserve banking (1947)…
There seemed to be little doubt about the direction of markets this morning: stocks higher, gold and silver heavy, oil mixed. In FX there is a tiny rally in euro/yen but it’s a push for the dollar index which has been trading unchanged for two weeks. Bitcoin was higher at 6 PM Sunday evening and spent the next 22 hours virtually incapacitated by something, probably IBIT option open interest expiring on Friday.
Day two of Trump’s Asia tour began with a royal welcome in Japan and a meeting with the Emperor at the Imperial Palace later in the day. “Peace and prosperity” through deals on security and economic cooperation summed up day 1 in Malaysia. Back at the ranch, Chuck Schumer pilloried the president for wasting his time on photo ops while the government remains shutdown. Newsflash, sir. No one seems to notice any difference! In the same vein, stocks are already trading on a 0.25 bps rate cut. Who needs the FOMC? … oh wait. They might cut 0.50.
In the markets
Where to begin…lets take the better with the bitter first. Gold has wood to chop. Copper and PGMs might be the first to recover. No news is bad news in oil and good news is bad news in oil. Bitcoin just can;t hit the curve. And it’s time to chill in the vibe.
