OptionEye - Macro Outlook - July 10th
Yesterday's Fed minutes were not hawkish. And, because they were not hawkish the must be dovish right? The market thought so and rallied. Now, introduce James Bullard, Portugese banks and a miss on some economic figures in China and it's one big reversal.
Equities getting slammed with the DOW down 150.
Corn, wheat and beans all higher this morning which is a nice thing to say as of late. corn up 2, wheat up 3 and beans are up 9. Enjoy it while it lasts.
Gold a big beneficiary of the turmoil this morning up $15.40 to $1343.20. Oil continues its slide to $100 and trades at $101.87 down .42 cents.
The dollar is stronger again and stands at 80.13 up .13.
Lastly, the 10 year yield still signaling danger ahead trading at 2.50%. It would be pretty surprising to see that trade into the 2.40's.
The FED warned about excessive risk yesterday and I think it is a symptom of their interest rate policy. We shall see.