Jobs Up, Rate Cut Hopes Down

You like to think that you're immune to the stuff, oh yeah
It's close to the truth to say you can't get enough
--Robert Palmer

A stronger than expected jobs report this am has quickly quelled expectations for a July rate cut from the Fed. The 10 yr is getting hammered, dividend paying stocks are selling off, and gold has dropped nearly 30 handles.

One of the few sectors trading dry is the banks, presumably because rising long bond yields steepen the yield curve for carry trade activities.

Hard not to speculate that market participants won't somehow rationalize that the Fed will still deliver a summer dose of stimulant to satisfy the market's rate cut addiction. Many gold-related instruments are off their lows, perhaps in sympathy to that prospect.

position in gold