Weak Payrolls but Miners Scream Higher – Metals Follow as Paper Crude Declines
Weak payrolls and heavy downward revisions arrived alongside a soft dollar, while miners and metals broke out strongly, equities hit new highs, and paper crude sold off sharply.
Source: Peak Prosperity
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DW NOTE
Miners rallied into new highs the same week payrolls fell and crude dropped seven percent — despite the Strait of Hormuz still being effectively closed. The market is pricing in a Fed pivot while ignoring the supply shock that hasn't cleared and the inflation overhang that hasn't stopped. When reality reasserts itself, these divergences won't unwind gently.