What stays in Vegas is a pullback at the casinos

Long-term momentum technical indicator favors the TSX over the S&P 500

Highlights

• The sustained decline in Vegas gambling activity belies the resilient consumer narrative

• A strong 7-year auction boosts the Treasury market

• Big Tech adds more fuel to nuclear power (hold Uranium!)

• Wage and price pressures are receding faster than the headline data suggest

Key Takeaways

Global Bonds Rally

• U.S., European and Japanese bond markets have managed to sustain a rally. When was the last time that happened? The 7-year T-note auction yesterday was met with strong demand. When the cyclical bear market in bonds began in 2022, it was this auction that kept tailing that acted as the leading indicator for where yields were heading.

Nikkei 225 Gains Amidst Negative Performance in Asian Markets

• It was a rough session overnight in Asia, but not in Japan where the Nikkei 225 jumped +1% and now up more than +17% for the year.

Gold Reaches New Highs

• Gold has hit a fresh high, and its accomplishments given the strength in the stock market and U.S. dollar show it has gone from a commodity to a currency asset that protects investors from fiscal, political, and geopolitical risks.