1. Housing Is Still Feeling the Pressure
U.S. retail sales came in okay, but core retail sales declined.
Canadian housing starts also came in slower than expected. Not shocking at all.
The U.S. housing market continues to face headwinds. Mortgage rates are creeping higher, home sales haven’t been that exciting, and home price growth has stalled in a big way.
2. War Headlines Keep Driving Oil
Iran says the Strait of Hormuz is a red line for the country.
Trump apparently wants Iran to come to the table by bombing more.
The circus continues.
Oil is obviously reacting to it, with WTI trading around $80.
The war is hurting sentiment and could potentially be impacting demand. Too much noise about inflation, very little noise about demand destruction.
3. Metals Are Under Pressure
Gold is back below $4,000.
Silver just tested its June 24 lows. A close below those lows could be dangerous. A death cross has formed as well.
Copper has been catching a bid since the war restarted. Is sulphuric acid-related supply the reason? It’s worth watching.
4. The Bubble Is Deflating
Have you seen those hot memory stocks that everyone wanted to own?
Well, a lot of those names are now in deep bear markets.
We warned about this. We called them a bubble and being in mania phase.
Remember Investing 101: if something falls 50%, it has to rise 100% just for you to break even.
5. Bitcoin, the Dollar & Canada
We are watching Bitcoin at its 50-day moving average.
The U.S. Dollar Index (DXY) is battling the 100 level. Let’s see if it holds. Mind you: a stronger U.S. dollar is putting pressure on the metals.
Meanwhile, the Canadian dollar continues to catch a bid. Yesterday, the Bank of Canada held rates and said the economy is improving.
Once again, very little attention is being given to the pushback against data centers.