- With the exception of crude, the headwinds I highlighted last week (DXY, Yields) have indeed followed through on the short-term reversals I called for.
- Unsurprisingly, equity markets reacted inversely and continued to make new highs. I suspect a continuation of these conditions.
- The only data prints of interest this week are the CPI and PPI readings, which are only relevant in that inflationary prints will likely raise the probability the Fed maintains the higher for longer policy.
- The persistent rise in the GSCI over the last four weeks has me concerned that the inflation prints will come in above expectations. If this occurs risk will likely see a downward adjustment in price.
