Markets Rage Higher, as King Dollar Asserts His Eminent Dominance

Commodities are weaker this morning, in spite of a sharply higher stock market.

WTI is off by 1.7% and the dollar is, once again, strengthening v the euro. This comes after expectations for a September or December rate hike soared, given Yellen’s most recent remarks.

This morning consumer spending came in at 0.3%, matching expectations. There is a glow around stocks now that is hard to shake. Even though a stronger dollar and weaker oil price is bad for the fundamentals of the economy, investors are buying stocks regardless.

Like I said last night, don’t expect much of a move this week, until the Friday jobs report. It’s the last week of August. The Bears have been flayed and festooned all over Wall Street. This is nothing less than a celebratory victory lap in the face of harrowing headwinds.