On Second Thought..

Spoos higher, Long end treasuries higher, Gold and silver higher.  If dollar wasn’t in the green you would think yellen never spoke on Friday.Some of the Bullishness Is in response to the expectations of the Fed Hiking Once this year and on  hold for the foreseeable future.Also  even though the fed  could hike BOE,ECb and BOJ are still  conducting some form of asset purchases and possibly could increase these purchases.The long END of US yield curve still a much desired place for Investors money and as long as some  central banks continue to Provide stimulus some of this money will end up in  Bonds.Another factor is that with the Fed hiking rates it will keep inflation down  and thus not be a bearish factor for long end.technicals also playing a small role as real  good yield resistance has caused prices to find support.Roll activity and Month end Adjustment fill out list of Excuses for higher Treasury prices.

One day  Stocks don’t like higher  rates, then next they do.Financials leading the charge higher today  as they as a group +1.19%even utilities  which abhor higher rates are  +.5% as a group.I believe a small rate  hike is not a bad thing as many fed officials have hinted at. if Hikes are done in  moderation,almost certainly the case it  will be a confidence builder for Economy. Stronger economy=higher stocks.mizuho out with a piece saying Dividend payout for US stocks could reach a near record  $100 Billion in Q3..Another reason to buy stocks!

Both Oil and Rbob showed a hefty jump in net longs for week ending 8-23.These weekly position reports have turned into a  contrarian Indicator as Speculators get long  prices move lower and vice versa. I believe this is happening again in Oil and Gasoline.tropical Disturbance 9 which is located in the Gulf of Mexico will not turn into anything more than a storm Event risk also coming out of Gasoline market

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