Copper and gold both lining up for a breakout: Copper miners are looking constructive, $COPX's setup lines up with a call-buying surge underneath it and $ERO's a clean example of the same chart. Gold data's staying strong too, flow's targeting September calls with $SLV showing a similar picture and a touch more hedging. The read into today was both metals get their breakout together, and the more-irresponsible-fiscal-spend headlines only add fuel to the gold side of it.
Defense sells off on buyback jitters, but KTOS doesn't fit the story: Defense stocks sold off on Trump's buyback comments and $KTOS wasn't spared, even though the actual complaint, legacy defense names plowing profits into buybacks instead of production, doesn't really apply here. Market's going to do its knee-jerk thing regardless. Doesn't break the bottoming setup we've been watching in the group, 64.5 is still the level to reclaim if it wants to get going again.
Yields still won't cooperate despite Bessent's intervention: Bond yields are still running hot even after Bessent's move, and the market's read is it doesn't buy the long-term durability of the fix. Ties right into the Treasury buyback story from earlier this week, the relief looks more cosmetic than structural so far. If yields don't actually come down, the rate-sensitive rally in gold and beta names may stall out.
Aggregated and distilled by Two Sentence Traders. Not financial advice.
