The South Korean KOSPI tanked again overnight(I think we can put a fork in this parabola), and that had US chip stocks under pressure, which was weighing on the equity futures.

On top of that, the US and Iran traded more strikes overnight after the "MOU" all but went up in smoke last week, as it was destined to do. Those strikes had oil up about 5 percent ahead of the equity open as well, which in turn helped to pressure yields and the dollar higher. Metals were weaker again.

The S&Ps opened down a touch and pretty much sawed lower all day to go out on the lows with a loss of nearly a percent. The SOX was dumped for 5 percent (sure looks like a H&S top on this one), and the Qs lost 2 percent.

The dollar basically grinded higher all day and went out near the highs with a gain of a third of a percent per the DXY. Yields also went out on their highs, with the Fed-sensitive 2yr hitting a new 52-week high of 4.28%.

BTC slumped 3 percent, and MSTR fell nearly 3 percent. Crypto continues to trade like a bear market.

Commodities were generally lower, except for crude, which jumped 9 percent on the back of more fighting between the US and Iran as well more threats from both parties.

Gold slumped nearly 3 percent to as low as $3987 and would finish just off those lows at $3998.

Silver similarly was spanked for over 3 percent and would finish just off its lows near $57.

The GDX gapped down a little on the open, bounced to fill the gap, and then rolled over to slumped back to near last week's low for the move. For the close, the GDX would go out near the lows of the day with a loss of almost 3 percent to a new low close for the slide since the top.

Once again, gold, silver, and the GDX all closed below their 5 dma's, which leaves the bears in control from a purely statistical basis.

I was on vacation all last week, but my opinion (and positions) hasn't really changed. I still suspect the odds favor some sort of flush to new lows below the June lows in the metals and miners, and then we'll see where things settle out.

While I don't believe it to be the case in reality, the market believes that the Fed will be tough on inflation, which will be exacerbated by another rally in oil, and that Warsh is going to try and earn some credibility by talking tough (we'll see if he actually does anything). This tough talk has pushed yields and the dollar higher and pressured the metals.

That brings us to tomorrow's CPI, which is expected to be "cooler." Perhaps that will give the metals and excuse to bounce and for the dollar and yields to come in? However, I don't think Warsh will be particularly dovish when he testifies before Congress. So, any bounce on the CPI may be one that gets sold.

Toss in higher oil prices and a continued decline in the chip bubble, and things could get a little messy if sellers show up again.

My gold model hasn't updated yet but was neutral coming in to today and has been neutral since coming off a Tier 3 BUY within a day of the recent July 6th high. Subscribers can check the Morning Note in the AM for where the model is after today's action.

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

Metals: Long GDXD and ZSL. I also added some SLV 48 puts today for Wed's expir for 7 cents.