Yields Falling and Everything is Good in Hollywood — Nick Santiago 7-12-23 #508

Source:
https://www.spreaker.com/user/appeal2/nick-508

1. Total CPI for June was up 0.2% month-over-month with the index for shelter accounting for 70% of the increase. Core CPI, which excludes food and energy, was also up 0.2% month-over-month consensus was 0.3%, which was the smallest month-over-month change since August 2021.
This puts the Fed rate hikes on hold if they want at the next meeting. Maybe they raise once more in July and signal they are done after that. Either way, the 2-year yield is dropping to 4.76% and that gives the Fed some wiggle room as long as the Fed funds rate is above the 2-yr yield.
Tomorrow morning the PPI report will be released at 8:30 am ET. Lets see the reaction to that number.

2. Today's rally is broad based with the exception of health care stocks. Companies such as United Health (UNH), Cigna (CI), and Humana (HUM) are under pressure. This industry group has been struggling for the past several months and remains under pressure.

3. Gold is catching a solid pop this morning trading higher by 1.17%. Silver is up 3.7%. Nick’s upside is 25. It looks like the precious metals are showing strength today as yields retreat and the US dollar falls. There is talk of a BRICS gold backed currency coming. This could keep a bid in the precious metals should that start to happen.

4. Bitcoin is flat today, but the chart pattern remains constructive for more upside.