Over the weekend and after a rough trip to the east coast due to major delays, we got out of the Uber car to be greeted by this buzzing hornet’s nest affixed to my sister’s house.
The exterminator came on a Sunday, yay, and sprayed those nasty bald-faced hornets into oblivion.
The nest though illustrates architectural genius.
The outside is made from digested bits of wood, while the infertile females inside, create elaborate honeycombs.
Monday, the elaborate façade of the market, protecting the sweet honey that so many bulls have gathered, met with its own exterminator.
The headlines were all about another political shakeup. We see that as a factor, but not the factor.
Nevertheless, the market, basically immune to any death spray thus far, had some nest damage but also created some honey.
Over the weekend, we talked about the US dollar, interest rates, and commodity prices.
The point was to bring you an awareness that the dollar if it becomes more vulnerable, presents a couple of potential dilemmas.
One is rising inflation, which would force the Fed’s hand on rates.
The other is the trade wars and the possibility of the dollar losing its status as the world’s currency.
Meanwhile, the dollar (UUP) bounced from its support levels and closed near the very pivotal 25.00 price point.
The interest rates (TLTs) are most likely waiting for the Fed meeting mid-week. They did firm some, yet continue to hold what we consider HUGE support-or a do or die level-116.
Except for crude oil, Commodites remain relatively trendless as a result.
Remember, we need a real trend, and not just the current chop among the 3 factors of the dollar, rate, and demand for raw materials.
For instance, while emerging markets partied last week, today, they got hit pretty hard. Not quite extermination, but now, some damage on the façade.
Semiconductors brought the market’s honey. That, in turn, helped Nasdaq.
