The Consumer Price Index data came in 'better than expected' this morning. They were particularly irrelevant, even given their dubious authenticity, because of the recent spikes in the price of oil which it does not even begin to capture.
So stocks bounced, the Dollar eased.
Gold and silver rallied back, Bitcoin bounced.
VIX of course fell.
There will be an option expiration on Friday.
I think the pricing discovery mechanics of the US risk markets is broken.
Nothing too surprising if you believe that we are in a late stage asset bubble.
The conflict in the Persian Gulf is intensifying. The Ukraine is as well.
What's odd is that most of the involved parties are attempting to avoid climbing the escalation ladder, with a few notable exceptions from those who it appears are on the losing end of things at least for now.
How long can this be sustained?
Ladies and gentlemen, place your bets.
Have a pleasant evening.
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