Once Again, Will You Remember Genco?

Lost in the shuffle of all the Fed victory laps, emotions, and general news flow this week has been the $2.1 billion merger between SBLK and EGLE to form the U.S.'s largest dry-bulk shipping company. 

About a week or two prior to the merge we had noted the strength in Eagle both here and with Members. In addition, we thought Genco (GNK, on daily chart, updated below) also could move. 

And now we have GNK acting well, back above its 200-day moving average, as the dovish Fed opens the door, yet again, for commodities to ramp as I have growing conviction into 2024 that inflation will return with vigor, much to the chagrin of bullish doves everywhere who are as arrogant as ever. 

There are always consequences in economics, regardless of the politics and fancy arguments to the contrary. Here, this is the third year running with CPI above the target rate. And yet the market wants desperately to price in multiple rate cuts next year--Forty years of declining rates and disinflation will do that to ya.

But this is a new regime, and will eventually be fully accepted by the time it is too late.