Good Wednesday afternoon. It’s time to discuss Iran, oil prices, interest rates and the next move from Trump. Yesterdays weak action, which featured sharp losses in Nasdaq (followed by another solid smart money hour, with the Dow Jones finishing up 56 pts) was brought on by a semi-hot CPI, which is of course due to high oil prices (because of the war). Oil topped $103 this morning while 10-year yields hit their highest level since the war began (4.47% this AM).

Know this; this the exact level on both rates and oil where Trump and Bessent have previously taken action (as seen below).

The bears are hyper-focused on oil and rates. They’re convinced that both are going higher…taking inflation with them...and that at some point soon this will knock the market on its butt. 

I don’t see it that way. At the end of this week, Trump and Bessent will be joined by a new and powerful ally, Fed Chair Kevin Warsh. Know this about Warsh; unlike the Fed Chairs before him (as 90% of the...