The hot inflation numbers are leading to strength for bonds, which is having plenty of secondary effects. Here we see the /ZB futures, which as of this moment are holding on to a modest gain for the day.

(Click on image to enlarge)

Looking at a broader view, and this time by way of TLT, we can see a well-formed base. The peak was last Thursday (and I mentioned we’d probably sell off some, given our relationship to the ascending channel) but I think we’ve burned off enough steam. I can see this pushing higher from here for days to come.

In turn, the banks are weakening. I would note this is especially interesting since, pre-market, both GS and JPM had blow-out earnings, and they are both down. Here is XLF:

The one asset I’d like to see a push higher is gold, which is up, albeit not by much. It needs to conquer the descending trendline and, more importantly, the price gap.

As for equities, the inflation-shock-selloff lasted about as long as I guessed (e.g. not long) and the entire CPI report has been rendered moot by the Powell Printing Presses.

(Click on image to enlarge)