THE CHAPMAN REPORT – Leap in Equities, Bonds Sell Off, & More…

This week

• Equities leap on Aug 2 following the release of some better than expected economic numbers. That coupled with good numbers late last week have offset weaker numbers seen earlier in the weak.

• Bonds sold off on Aug 2 as the economic numbers were stronger than expected. Key is this Friday when the non-farm payroll for Jul is out.

• Gold is better but just, as it tested lower last week briefly breaking under $1175 before rebounding. Gold has been weak despite a weak US$. The US$ has been falling as the risk factor dampens and there is less need to hold safe haven currencies.

• Oil prices were strong on Aug 2. The Chairman of the Joint Chiefs of Staff opened his mouth at NBC’s “Meet the Press”. A tropical depression is forming in the mid Atlantic.

D.C.