The Game is Moving to a Higher Level Now that Bond Bubble Blow-OFF is confirmed.

Which Game ?

The game between the White House and the Fed, or said another way Trump Vs Powell.

The White House is trying to set the stage with tweets, but it has no real power in this contest.

The Fed is learning how to act once the stage is set by WH.  In the current situation the Fed has dropped rates a little bit but says the consumer economy is strong.

That puts the game in the markets hands. It is obvious, as we have been saying, that the Bond Bubble has had its blow-off.  Now the ten year yield is stretching upward, probably to the 2.3 % area.

Next is the Stock Market Bubble

In what we have stated is the most manipulated market in modern history, at least in my 47 years of trading, makes the 1980’s Hunt Silver fiasco look like a fairy tale, the undertone is terrible.

That probably is a function of a settling in of poor final demand, static interest rates, and a negative 4th quarter GDP outlook.