Earlier this week, we relayed Iran’s Parliament Speaker Ghalibaf’s warning of military surprises to come.
Earlier this week, we relayed Iran’s Parliament Speaker Ghalibaf’s warning of military surprises to come. This morning we wake to news of renewed and apparently extensive attacks on shipping through the Strait of Hormuz. The surprising part, though, is the muted reaction in the media. The Iranian attacks barely register in the top 10 stories across major outlets.
If your business is trading, though, this attack has to be thing #1 on your mind today. WTI crude is up $4 to more than $92 per barrel. More importantly, the 10-year yield has been driven to 5.32%, above the 5.30% marker set by yesterday’s strong note auction. Market observers were touting bonds yesterday, thinking the auction results had drawn some sort of upper bound on rates, which would have been a strong setup for stocks as we approach earnings season. That scenario is now in jeopardy or at least delayed somewhat. It’s not that this single attack in itself has been so disruptive. This issue is more that the timing has wrongfooted traders and may cost a little P&L this morning.
In other news, we are gratified by the move in WOLF this morning, which we’ve lately highlighted on our trading board as primed for a move due to its enormous short interest. Word of finance backing from the US government has sent the shares 16% higher in today’s premarket. Keep an eye on our board for more setups as they develop in real time.
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