Although the Fed is dovish and we are in the third year of a US Presidential elections cycle, I am getting nervous about the long side. Some political uncertainty has been removed as well with the Mueller investigation drawing to a close. US Treasury bonds yields are at multimonth lows which could be seen as a sign of easing and or a weakening economy. Trade tariffs and trade agreement uncertainty may be increasingly weighing on economic performance. Several economic indicators are becoming increasingly bearish. Attached below are a chart from Bloomberg on maritime industry Dry Baltic Index, DAT US Trucking metrics, and a CME chart of Palladium. The yield curve is a bit inverted as well. Of note, it looks like economically sensitive palladium has finally topped with its huge down day today. https://www.bloomberg.com/quote/BDIY:IND https://www.dat.com/industry-trends/trendlines https://www.cmegroup.com/apps/cmegr...ium_&type=p&exchangeCode=XNYM&dataWidget=true
We've got a little bounce here at support level. It should get sold off very shortly. Classic bear marketing activity.