Better Call Paul, Season Two

Treasuries have not yet buckled, but the price action in soft commodities (and indeed most commodities) of late, coupled with a weakening Dollar, sure smack of the early stages of some type of inflation trade.

We have discussed this topic before. And the resilience of the bond market is truly legendary, with TLT actually on the cusp of a new breakout. 

Still, when soft commodities rally as sharply as they have, it is typically a noteworthy development. 

Regarding equites, bulls are still largely in control, and shorting the indices is likely dangerous given how close we are to all-time highs. 

We are still playing under-the-radar stocks, even sectors, and taking what the market gives us.

Moreover, as weak as some major consumer names have been, others like LULU WFM are waking up. So, perhaps rotation will be a bull case even within the consumer theme. 

More in my video market recap after the bell, the full one for Members and the brief one here.