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ShelladyOptions
Senior Contributor

OptionEye Macro Outlook August 4th

Good morning.

 

Bank of England cuts....yes cuts rates. That is one of the 5 big central banks of the world. Our bonds are flying higher and rates are trading lower. The dollar is already a little stonger. This morning it is at 95.78 up .22. 

 

Overnight corn is up 1, beans up 7 and wheat up 4 to 5. That 955.5 level in Nov beans has held. It is the 200 day moving average that technical traders have been watching and so far so good if you are a bull. 

 

The 10 year yield movning into 1.51% on the BOE cut of a quarter point. 

 

The oil market trading a little lower at $40.64 down .19 cents. Gold up at $1360.28 up $2.08. 

 

Stocks are going to open a little higher with the S&P future up over 4 points and the Dow future up 50 points. 

 

I would have thought things would have reacted better to a cut from the BOE. We shall see. 

 

Today we get Initial Jobless Claims, Continuing Claims, the Bloomberg Consumer Comfort Index, Factory Orders, Durable Goods and Capital Goods - but none of it really matters with non-farm payrolls looming tomorrow. 

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timetippingpt
Honored Advisor

Re: OptionEye Macro Outlook August 4th

The globe has tried this "depreciate the currency faster than your trading partner" more than once. NEVER has it ended well, often it ends very violently. Maybe the smart wealth is starting to realize the risks are becoming gargantuan.

 

At some point, everything becomes over-valued. The paper markets (stocks, bonds) are clearly screaming they are in that position.

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