Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Hawk> Good observation.


Lets see how long Friday's trends last and if they continue...

Gold (down). (new 2004 yearly low).
Bonds (down). (Japan steps back?)
Dollar (up). (double bottom?)
Stock Market (down). (double top?)

The raw commodity price inflation since the March/03 bottom is raging upward through the pipeline now. In the old days when industrial commodities rose that much in a 6-9 month period the SM was a clear sell. Margin squeezes. For example crude prices are now showing up at the pumps with record gas prices coming with the CPI soaring this month. Its set to rise by a similar amount next month IMHO with import prices up 1.3%. The BLS hasn't released the PPI this past month. Something smells with that. Rumors that steel in short supply, copper too. All this caused by China, where inflation is upwards 4-5%.

Are policy markers going to try and cool this off? We are also only 1 good above trend labor report that features a spike in wages away from a rate hike.