Markets have continued higher, even with yields rising back to higher levels and a strengthening dollar in recent months. You can see from the charts below how yields bottomed out at the start of the year, correlating to the DXY reaching almost the 100 level. Since the start of the year, this market has plowed higher, even with rising yields, the Fed pushing back cuts, and a strengthening dollar. 

Earnings and a strong economy have proven so far they can handle higher yields for longer, and the stronger dollar that comes along with such a scenario, although we saw quite the pullback on Thursday, and we may face some increasing short term volatility as we move forward in a market that is still priced for 2-3 cuts, when that seems optimistic at best with how hot this economy continues to run.

We went short TSLA on Friday, and Elon tweeted out Friday after the close that TSLA would unveil their robo taxi on August 8th. It almost reeks of weakness, but we know that many times stocks are not rational, especially when it comes to TSLA, so keep your stops in place, but I still like the short, maybe even more so considering his history of over promising when it comes to their fleet of robotaxis. 

Gold has pulled back a bit to start Sunday night futures, but I see this as short-term volatility on a larger trend to the upside for gold.

Equity trades:

Long TSLS - TSLS Direxion Daily TSLA Bear 1X Shares - at $26.55. Stop is $22.10.

Long 1/2 position in DIS at $98.75. We will look to add to this position in the future.

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