It really seems like he is trying to show someone (not us) that he can move the market up and down at will. Too early to tell, but volume is yuge so far.
Imagine no catalyst in this environment that can be seen as positive news to drive the market higher?!
These tariffs are being used to weaponize Central Bank policy, and it's clear they are also being used to act as a buffer for negative market divergence.
If Powell had ended his speech last wednesday without a catalyst to drive the market higher, it would be in freefall. The "trade agreement" was pre-planned after last FOMC in order to create the illusion that liquidity exists...but look at bond yields, look at the DXY. Both are screaming rapidly rising risk, even though the market is celebrating something that should be positive for the economy.
DXY should be cratering form a legit China deal, not rising. Higher DXY isn't good for the real strength of the dollar...especially when bond yields rise simultaneously. The entire world wants a weaker dollar, relative to the strength of other currency's...not a stronger dollar relative to other currency's. Because it is signaling the dollar is stronger compared to other currency's it means that something else is brewing behind the scenes that is negative for the markets.
As the U.S. Dollar Index (DXY) rises, many interpret it as a sign of strength in the U.S. economy. Traditionally, a higher DXY reflects confidence in U.S. assets, economic growth, or safety. However, in the current environment, that interpretation is misleading. Jerome Powell and the Federal Reserve have openly stated that the path forward is uncertain. There’s no clear plan, and inflation remains sticky. This suggests that the dollar isn’t rising because investors are optimistic — it’s rising because global capital has nowhere else to go. It’s a defensive move, not a show of confidence.
A similar misreading is happening in the Treasury market. Rising demand for U.S. Treasuries — which often accompanies a rising DXY — is usually seen as a sign that global investors are seeking safety. But what we’re actually seeing is capital chasing yield, not stability. Treasuries, including longer-duration bonds, are offering returns that seem attractive only because the rest of the financial system is so unstable. High-yield and even borderline-toxic bonds are being purchased because investors are starved for income. That’s not a healthy market — it’s a system being held together by desperate flows into anything that still yields.
Another misinterpretation lies in the belief that a strong dollar reflects strong trade. This would be true if U.S. exports were booming, or if global trade settlements were increasing in dollar terms. But U.S. exports are slowing, and tariffs are distorting trade flows. Tariffs can temporarily drive demand for domestic pricing power, but over time, they reduce international trust in dollar-based transactions. So the DXY is rising not because trade flows are strong, but because dollar demand is being artificially propped up through policy measures that have long-term destabilizing effects.
There is, however, one part of the DXY rally that is real — and that’s the global fear. Investors are fleeing to the dollar because every other currency, market, or region appears more fragile. It’s a flight to relative safety. The problem is that “relative” is doing a lot of work here. Investors are not buying the dollar because they believe in the Fed or the U.S. economy. They’re buying the dollar because there is no better alternative — not because it’s sound, but because everything else is worse.
This is where the danger lies. Market participants are misreading these signals. They see a rising DXY and assume the U.S. economy is strong. They see gold and Bitcoin selling off and assume that inflation is done. They see rising equities and believe the soft landing has arrived. But under the surface, the signals don’t match. Yields are rising not from growth, but from stress. Real assets are being liquidated not because they’re weak, but because liquidity is drying up. The DXY isn’t rallying on strength — it’s rallying on fear.
The only thing I'm looking for is seeing you crawl out from under your 'mechanim' rock after waking up and seeing Trump's new daylight shining on the USA and the USD!
It's a big card game - everyone protects their hand... social credit score bridge to CBDC/Crypto enslavement/poverty - while TPTB print their way to prosperity buying real assets - as Babylon domino-people tug at their own meat-hooks.
It really seems like he is trying to show someone (not us) that he can move the market up and down at will. Too early to tell, but volume is yuge so far.
Welcome to America!
Welcome to most corrupt lying nation on the Planet. = Fact
There’s plenty of corruption and lying to go around!
Yes! And the USA is #1...
The big boys knew this ‘Sunday’ deal was coming … probably serious profit taking tomorrow
It's not real cause it's not based on substance, Greg... You already told us this.
Humpty Dumpty Trump Sat
On A China Wall
Humpty Dumpty Trump Had
A Great Fall
All The Kings Jokers and
All The Kings Clowns
Couldn't Put Trump
Back Together Again!
Your poetry is higher IQ than your brain.
Imagine no catalyst in this environment that can be seen as positive news to drive the market higher?!
These tariffs are being used to weaponize Central Bank policy, and it's clear they are also being used to act as a buffer for negative market divergence.
If Powell had ended his speech last wednesday without a catalyst to drive the market higher, it would be in freefall. The "trade agreement" was pre-planned after last FOMC in order to create the illusion that liquidity exists...but look at bond yields, look at the DXY. Both are screaming rapidly rising risk, even though the market is celebrating something that should be positive for the economy.
This is a bad omen.
The DXY is 2% higher than last week. WTF are you looking at?
DXY should be cratering form a legit China deal, not rising. Higher DXY isn't good for the real strength of the dollar...especially when bond yields rise simultaneously. The entire world wants a weaker dollar, relative to the strength of other currency's...not a stronger dollar relative to other currency's. Because it is signaling the dollar is stronger compared to other currency's it means that something else is brewing behind the scenes that is negative for the markets.
We need a weaker dollar. We need to devalue the 37 trillion in debt.
Higher DXY is a relative measure of the strength of the dollar. The move to stocks from bonds is the normal "Risk on" trade...
You better inform Gregory that the DXY isn't a sign on the dollar. LOL That's what he's been using and saying for weeks now.
"Higher DXY isn't good for the real strength of the dollar."
How else would an improvement in the dollar show up?
As the U.S. Dollar Index (DXY) rises, many interpret it as a sign of strength in the U.S. economy. Traditionally, a higher DXY reflects confidence in U.S. assets, economic growth, or safety. However, in the current environment, that interpretation is misleading. Jerome Powell and the Federal Reserve have openly stated that the path forward is uncertain. There’s no clear plan, and inflation remains sticky. This suggests that the dollar isn’t rising because investors are optimistic — it’s rising because global capital has nowhere else to go. It’s a defensive move, not a show of confidence.
A similar misreading is happening in the Treasury market. Rising demand for U.S. Treasuries — which often accompanies a rising DXY — is usually seen as a sign that global investors are seeking safety. But what we’re actually seeing is capital chasing yield, not stability. Treasuries, including longer-duration bonds, are offering returns that seem attractive only because the rest of the financial system is so unstable. High-yield and even borderline-toxic bonds are being purchased because investors are starved for income. That’s not a healthy market — it’s a system being held together by desperate flows into anything that still yields.
Another misinterpretation lies in the belief that a strong dollar reflects strong trade. This would be true if U.S. exports were booming, or if global trade settlements were increasing in dollar terms. But U.S. exports are slowing, and tariffs are distorting trade flows. Tariffs can temporarily drive demand for domestic pricing power, but over time, they reduce international trust in dollar-based transactions. So the DXY is rising not because trade flows are strong, but because dollar demand is being artificially propped up through policy measures that have long-term destabilizing effects.
There is, however, one part of the DXY rally that is real — and that’s the global fear. Investors are fleeing to the dollar because every other currency, market, or region appears more fragile. It’s a flight to relative safety. The problem is that “relative” is doing a lot of work here. Investors are not buying the dollar because they believe in the Fed or the U.S. economy. They’re buying the dollar because there is no better alternative — not because it’s sound, but because everything else is worse.
This is where the danger lies. Market participants are misreading these signals. They see a rising DXY and assume the U.S. economy is strong. They see gold and Bitcoin selling off and assume that inflation is done. They see rising equities and believe the soft landing has arrived. But under the surface, the signals don’t match. Yields are rising not from growth, but from stress. Real assets are being liquidated not because they’re weak, but because liquidity is drying up. The DXY isn’t rallying on strength — it’s rallying on fear.
This is why the dollar won't collapse in the near future... the rest of the world is just as fucked.
I loaded up on s&P SHORTS today. And bought silver. Lol.
$39 Puts sold expiring EOW on $SIL. This pullback in gold/silver ain't gonna last. Silver lagging, and pullback is bullshit.
Wouldnt they be buying treasuries then? It looks like today they were buying stocks
Good call Greg. Volume is the indicator of the trading day.
Where's the beef? I haven't looked around much but the major ETFs don't have any unusual volume today, yet.
The only thing I'm looking for is seeing you crawl out from under your 'mechanim' rock after waking up and seeing Trump's new daylight shining on the USA and the USD!
We've been talking about that for a couple weeks now.
The Dow Jones volume is extremely light. The NASAQ 100 is not so bad. Almost normal.
Thanks for this ,Greg!
Greg this is HISTORIC. LOL🙄
XRP spiked 😃
Goodie for crypto fraud, the building blocks of the beast system!
Exactly. How do others not see it.
It's a big card game - everyone protects their hand... social credit score bridge to CBDC/Crypto enslavement/poverty - while TPTB print their way to prosperity buying real assets - as Babylon domino-people tug at their own meat-hooks.