The Simple Pleasures We All Take for Granted

With headlines swirling about a China energy crunch on top of the European one already afoot, we may very well be headed towards an interesting winter in terms of oil and gas prices. 

Here in America, with government benefits from the pandemic being wound down in many states and a generally feeling in the air that the worst of the pandemic may finally be behind us, a surge in filled jobs coupled with inevitable natural gas demand for winter could easily lead to the next spike higher in energy. And it may not just be energy prices: Coffee and various ag plays seem to be on the move, too. JO, coffee ETN, looks rather coiled up and ready to unleash higher, seen below on the daily chart, albeit thinly-traded in terms of volume. 

Overall, with rates on the 10-Year Note marching higher again, the market seems to be finally be taking note of the more-hawkish-than-expected FOMC this week. 

It takes time to unwind conventional wisdoms in market at times, first gradually and then suddenly. In this cycle, that conventional wisdom is that The Fed and Powell are omnipotent when it comes to goosing stock prices higher, especially tech and richly valued growth stocks. In due time, that will be proven false. But higher rates should be the first piece of the puzzle to unwind that way of thinking, and harshly at that.