The Chinese equity market rose a touch overnight. The offshore dollar/yuan was flat. Gold in yuan bounced a touch as it did in most of the major foreign currencies too.

Elsewhere in Asia, Hong Kong fell a touch. Japanese equities fell a percent. JGB yields rose 1 bp to 1.57%. The dol/yen was flat after attacking its downtrend since the Jan high.

European equity markets were up a percent or so this morning. German 10yr yields were unch at 2.69%. The eur/dol fell a touch to just below the July low and to a new low for the move since the peak.

Over in the US, the equity futures were up a touch ahead of the open cause it was "Tuesday." The dollar was firm vs. other colored paper again. Gold was flat, and yields were lower.

The S&Ps opened up a touch and immediately took a nosedive.

After a brief bounce when the JOLTS data come in largely inline, the collapse resumed until we finally hit a low around mid-morning with a loss of a quarter of a percent.

From there, there was an attempt at a bounce, but it didn't get far. In the end, we would collapse again into the close to go out just off the worst levels of the session with a loss of a quarter of a percent.

Volume was on the light side again. Breadth was slightly positive on NYSE and nearly 2 to 1 negative on the NASDAQ. New highs swamped new lows on the NYSE (88 to 25), and new highs swamped new lows on the NASDAQ (2001 to 100).

Stocks Were Mixed:

Stocks were mixed in no particular pattern.

The XHB homebuilding ETF fell a percent, and BLDR fell 2 percent.

Positions: I made no changes to my shorts in SPY, QQQ, MDY, IWM, ARKK, XHB, and BLDR.

Commodities Were Higher:

Brent crude jumped over 3 percent on top of yesterday's 3 percent pop. Natural gas rose 2 percent. The oil stocks were mixed, with the oil and gas ETFs all ending up or down by less than a percent. The uranium equities were spanked, with the URNM losing over 2 percent.

Copper bounced a percent. Other base metals bounced too, with the DBB base metals ETF adding a percent. The copper stocks were also lower, with the COPX losing over a percent. The steel stocks slipped, with the SLX losing over half a percent. The XME metals and mining ETF fell over a percent.

Palladium rose 2 percent. Platinum fell a touch to a new low for the move since the high. Notice the large bearish RSI divergence on the chart above.

Silver chopped sideways overnight and briefly attacked its uptrend since April before continuing to chop sideways in the US to end up an eyelash.

The silver/gold ratio slipped a touch.

The CCI equal-weighted commodity index ETF (GCC) rose a percent to just shy of a new multiyear high. The energy-heavy DBC commodity ETF rose over a percent. The Bloomberg Commodity Index (DJP) rose half a percent.

Gold Bounced:

Spot gold drifted sideways to up overnight by about 10 bucks and continued that chop during the US session to end up just a touch at $3326, which left the metal once again below the 50 dma for a second day and below its uptrend since the May low as well as any other uptrend one can imagine since January.

Gold Stocks Bounced:

The GDX opened up a touch and spent the rest of the session slowly edging higher to go out near the better levels of the day with a gain of over a percent. Volume was light, and that close once again left the GDX below the 5 dma for a second day, which means the bears remain in charge from a statistical standpoint.

The GDX/GLD ratio rose a percent.

The silver stocks bounced inline with the gold names. The SIL rose half a percent. The SILJ rose a third of a percent, and the GDXJ rose over half a percent.

Real yields were lower, and nominal yields were lower too. The yield curve flattened a little per the 2/10 spread again. The dollar was firmer vs. other paper again, but unlike the last couple days, it didn't seem to weigh on gold or gold stocks.

I still worry the dollar is headed higher in the short-run and that gold and silver are going to continue to correct, which will in turn weigh on the mining stocks as well.

Remember, if gold doesn't recover the 50 dma tomorrow, that will be the first time this year it has spent more than 2 days below that average, which will qualify as another "trend break" along with the various uptrends that have been recently broken.

Tomorrow we'll get the ADP data, and then we'll of course have the FOMC, where I suspect the Fed is going to continue to indicate it is on hold and will not telegraph a cut in September, which could disappoint some. Also tomorrow, we'll see whether Trump is willing to kick the trade can for another 90 days with China, which I suspect he will. And then finally on Friday, we'll get the jobs report, where I suspect we'll see more evidence of weakness creeping in but nothing alarming for the Fed (yet).

My gold model remained at neutral.

Positions: Long GDXD. Short Sep silver at 39.52 and short Dec gold at 3433. Long GDX 51 puts for Friday at 15 cents, GDX 50 puts for Friday at 8 cents, and GDX 49.5 puts for Friday for 6 cents. I also added some SLV 34 puts for tomorrow for 4 cents and added some more GDX 51 puts for 9 cents.

As always, I post all of these trades as Intraday Comments for subscribers in real time.

The Dollar Was Firmer:

The dollar was firm again against other paper. The dollar index popped a touch to above its downtrend since May.

"The" BTC ETF (IBIT) fell half a percent. MSTR, COIN, RIOT and other BTC derivatives were all lower.

Positions: Long IBIT (last add was to double the position on April 4th at 47.03).

Treasury Yields Were Lower:

Treasury yields fell 9 bps in the long end, which left the 10yr yield at 4.32%.

The 2/10 spread narrowed again and moved further below its uptrend since December, which is noteworthy.

Yields in the Fed sensitive 2yr fell 6 bps to 3.87% after failing to punch through the top of its compression triangle. Junk debt was higher, with the HYG adding a freckle to a new 52-week high. LQD, which is the investment grade corp bond ETF, rose half a percent. MUB, the muni ETF, rose a hair.

To Sum Things Up:

Let's see how disappointed people are when PowPow continues to give Trump the middle finger tomorrow and refuses to telegraph an easing in September...

REMAIN FLEXIBLE