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Senior Contributor

OptionEye - Macro Outlook - Aug 28th

Good morning. 

 

What a week. The volatility is here to stay. 

 

Overnight corn is up 1, beans are up 2 and wheat is steady to a little better. 

 

The Chinese market has been higher overnight but our stocks are taking a break from a near 1,000 point increase in 2 days of trading. This morning the S & P futures market is down 14 points and the Dow future is down 125 points. '

 

The 10 year yield is trading at 2.16% and is holding in remarkably well as the Chinese sell their treasury holdings to support their currency. This is dangerous as it is QE in reverse. Watch this space. 

 

The oil market was on a tear yesterday as it rallied hard to over $42 a barrel. This morning it is holding in  at $42.26 down .30 cents. 

 

Gold can't catch a bid and trads at $1124.10 down .74 cents. 

 

The dollar is virtually unchanged this morning but still relatively strong. We are higher by .01 to 95.62.

 

This morning we get Personal Income, PCE and the Michigan Sentiment Survey. Yesterday's GDP came in hotter than expected but don't get too ahead of yourselves as this was due to a record level of inventory build. We have to work through that to make it real. The Atlanta Fed has 3rd quarter GDP pegged at 1.4%. Not good. 

 

Try and have a restful weekend. 

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