Watching two elements of the macro markets we note that they are playing ball with each other nicely.
As the 30yr yield looks upward to 2.5% to 2.7%…
…its big picture is on track to reach the limiters.
While the CRB index ticked a new cycle high yesterday.
With its big picture target of 270+ in view. This target does not need to be a stop sign, but it should be a caution signal if/as both the yield and the commodity index approach these primary targets.
Far be it from me to spoil a party. Heroes are being produced daily now. But also far be it from me not to give warnings for consideration as appropriate. When you have targets in play for a couple of years and they are finally reached, it bears consideration. Much consideration.
As a side note, inflation expectations continue to diverge the CRB index. Maybe this will get fixed. But as yet, it is not fixed.