Bipolar Market Plunges, Triple Digit Gains Vanished

You can’t read too much into this shit. It’s a sloppy Friday. Old sport, junior, is still at the trading turret. His fucking cocaine addled boss isn’t back from Nantucket yet and has given strict instructions to not fuck up. So, give the kids of Wall Street a little rope (extra hanging) when judging a post Yellen speech market reaction.

Earlier, the Dow was up more than a hundred, commodities were ripping higher, yields were crashing, and the dollar was getting donkey punched. All of that has reversed and we’re now seeing a tight environment, one that is construing the Jackson Hole speech as hawkish.

Perhaps by the end of the day, it’ll be viewed as dovish. But for now, profits are being taken and the dollar is crushing the euro to the upside, by 0.4%.

My gold position will not change, since I believe any narrative that paints the Fed as hawkish is delusional. The closer we get to the elections, the less likely they’re to hike, the more bullish it is for gold.