GOOD MORNING! With nothing new on the trade front or the government shutdown, the Treasury market drifted. The bond market’s focus was the 10-year T-note testing the 4.0% yield level. The question was “would support show up at that key psychological level.” It did. That and dip buyers on a Fear Of Missing Out (FOMO) propelled the benchmark equity indices back to near their record highs. Dip buyers also helped gold to rebound. Oil continued its move up that started on Wednesday when the sanctions on two of the biggest Russian oil companies were announced.

     New news today is the trade negotiations with Canada have been terminated. What’s that all aboot, eh? Canada allegedly used a fake ad supposedly by Ronald Reagon on why tariffs were bad. Alos new today is a government sourced economic release. Since the Consumer Price Index (CPI) is used for the Cost Of Living Adjustment (COLA), it was needed. There will be some skepticism about its credibility, since we don’t know how many surveyors or how many were surveyed and prices checked. The consensus is that the headline CPI increased by 0.4% in September, bringing the year-over-y7ear rate to 3.1% from the prior 2.9%. Excluding food and energy, core CPI is anticipated to have increased by 0.3%, leaving the y-o-y rate at 3.1%. Giant brains on Wall Street don’t believe it will deter the Fed from cutting rates next week. That is keeping stocks firm in the early morning. The CPI report may resolve the Treasury markets test of a 4 % yield level. Other reports due out today are preliminary October PMIs from the S&P Global Group, thefi8nal October University of Michan Consumer Sentiment Index and September’s new home sales. Gold is on a bungee cord, going up and down. This morning it’s descending. Buckle up, it may get crazy going into the weekend.