Today is one of those days when he have to ask yourself are you any smarter at the end of the day than you were at the beginning? In my case, I can clearly say not so much…
Here are things we learned today but how will they translate tomorrow?
- Oil closed at the highest levels since November at $65 but the strength was not confirmed by an extension of recent dollar weakness.
- Japanese investors continue to assume risk at an astonishing pace
- There are heavy offers on rallies to 1.3980/1.4000
- Bill Gross likes Treasuries at these levels.
I guess, taken together we can forecast renewed dollar weakness, but this morning I was convinced that higher yields would stall-out the US economy just when it was trying to sputter to life. Color me confused…