As expected, the PCE came in "cool" inline with the consensus and was a total nonevent. The more interesting thing that took place before the open, however, was a sudden slide in the dol/yen, which at the time was only about half a percent and didn't appear to be intervention-related given that the dollar also tumbled vs. most other major currencies as well (more on that below).

The S&Ps opened up about a percent after the WSJ broke the story that the crippled hedge fund "Situational [Un]Awareness" sold the majority of its assets to another fund at the close yesterday. Basically, somebody levered long chips, AI, and tech finally puked, and people took that as a signal to buy.

After an initial rally, the S&Ps backed off a little, and then around mid-morning and for no particular reason, the dol/yen collapsed over 2 percent and importantly fell back through 162. The dollar also broke against other currencies as well, with the DXY tumbling back under 100.5. So again, this didn't appear to be intervention, but even if it was, all we need to know is that "it worked."

When the dollar broke, the metals initially yawned but then began to slowly grind their way higher along with most other commodities. The S&Ps also began to rally again too.

The remainder of the session was a nonstop rally in the S&Ps that took us out on the best levels of the day with a gain of over a percent and a half. The SOX jumped 8 percent.

The dollar was down across the board and broke important levels against the yen, EUR, CAD, and AUD, with the DXY dropping a percent and back below 100.5, which now makes the move in June and July above that level look like a false breakout and a bull trap.

Yields backed off a little but once again did so mostly in the short end, which steepened the curve again.

Commodities were higher, except for crude which backed off a percent after Trump's retaliatory strike wasn't the end of the world. Platinum notably popped 3 percent to break its near term downtrend and would break out from a double bottom if it can clear 1680 tomorrow.

Gold traded around within yesterday's range overnight and then began to slowly firm as we approached the US open. Once the US session began, the rally stalled, but when the dollar broke, gold began to grudgingly move higher and eventually traded up to a new high for the week and to as high as $4120 before chopping sideways for the rest of the day between that high and $4100 to end at $4108 and well over its downtrend since March.

Silver similarly traded around in yesterday's range and then began to grind higher once the dollar cracked to eventually go out back above yesterday's spike high and just over its downtrend since late May.

The GDX similarly opened a little higher and then began to slowly grind higher with the metals once the dollar broke, and the GDX would eventually go out on the highs with a gain of over 4 percent to a new high for the week. The GDX also closed back above the 5 dma, signaling that the prior two days spent below that key average were a head fake and that the bulls remain in charge. That goes for gold and silver too.

After a long bear market (and this one in the precious metals has been about 6 months), you often times don't see the metals react to dollar weakness at first. There's a bit of a delay, which I think has to do with muscle memory. Bulls are simply worn out and when the sun finally begins to rise in the form of a significant dollar reversal, they simply go back to bed and assume any rally will fail again.

Like with yesterday's "trial run" at taking out the downtrends though, which was followed by the real deal today, I suspect we'll see a catch-up move potentially as soon as tomorrow into month-end as gold, silver, platinum, and GDX all break out vertically (and not just horizontally over downtrends) in what should be a bull "kick-off" move to put an exclamation on the transition from bear to bull.

We'll see what happens tomorrow, but I've been looking for gold, silver, and GDX to all attack their highs for the month by Friday. The setup for such an attack is certainly there after today's creep up into the starting gate position, especially if the dollar continues to tumble overnight.

Speaking of the dollar, the BOJ should give the dollar slide a helping hand tonight too with another hike (not consensus) and more hawkish chatter, which will stand in stark contrast to Warsh talking tough but doing nothing.

My gold model remained at neutral.

Positions: Short, SPY, QQQ, MDY, and IWM. Long IBIT, STRC and DBA.

Metals: Long GDXU and AGQ. Long SLV 55 & 56 calls for tomorrow, and I added some more of the 55 calls today for 6 cents to bring my average down to 7 cents.