Trump’s speech to the Davos crowd yesterday helped elucidate his plan for getting interest rates back down: demand that the Saudis lower oil prices and then “demand that interest rates drop immediately.”

It’s hard to imagine that Trump hasn’t already had this conversation with the Saudis in private, as oil has indeed dropped over the past 10 days. Interest rates, however, are higher for the third day in a row – which makes next week’s FOMC meeting all the more important.

Futures seem uncertain as to how all this will proceed.

continued for members… Perhaps the most significant moves this morning are in VX, which is back below its SMA200……and EURUSD, which has broken out.

CL did in fact drop below its SMA200 yesterday, and is backtesting it this morning.

As the 2s10s remains near its breakout TL, the situation remains very fluid. Inflation has risen 3 months in a row and should rise again in Jan (released Feb 12.) Stay tuned…