BRASILIA (Reuters) – Brazil’s mining agency plans to ban upstream tailings dams used for storing mining waste, a director at the National Mining Agency (ANM) said on Thursday, after such a dam burst last month, likely killing at least 300 people.

Eduardo Leão, a director at ANM, said the agency aims to issue an ordinance on Friday requiring that such dams be taken down or converted into other types of dams.

https://www.reuters.com/article/us-vale-sa-disaster/brazil-set-to-ban-upstream-tailings-dams-after-collapse-kills-hundreds-idUSKCN1PW1MY

One thing seems sure to me. The bond market isn’t buying the SM rally as yields on the 10 year continue to drop. What does surprise me a little is the strength of the USD although I guess it’s understandable with the Brexit saga playing out and the Euro and Pound so heavily weighted against the dollar in the USD index…

We’ll see what happens. If we do get to $1280, I hope it holds, if not, we’re probably in for another long year.

USD strong again this am, SM weakness may be keeping us afloat. I do like seeing us go inverse the SM.

I’ll believe the SM rally is over when ZeroHedge posts a bullish article. In the meantime:

That Italian auction was very smelly, I looked at the charts and rates were already going up, before the auction…plus I have seen a call for Italian 10’s to go over 4.00 % next, that is a 34 % move at tdys rates, a 42 % move on ystdys prices…..who the hell does that, who is either sane or not part of the rig !!!!

Lots of talk here about a coming Italian crisis, as the ECB/EU will push Italian rates way out, to try and wreck Salvini and the so called populists, as he has made it clear he is going to bring down the EU’s cozy club….and he/they have the voters.

Now this…..

France Recalls Ambassador From Italy After “Unprecedented” Verbal Attacks

https://www.zerohedge.com/news/2019-02-07/france-recalls-ambassador-italy-after-outrageous-verbal-attacks

As a reminder, Italy agreed a deficit target of 2.04 percent in December, averting a major fall-out with the EU, though this was based on a growth assumption of 1.0 percent. Slowing growth in Italy could make it harder for the country to remain within EU rules. As a result of the downgrade, Italian 10Y yields popped higher, rising near 2019 highs, which is notable because when the report first hit yesterday, markets were largely oblivious and instead were congratulating themselves on the 5x oversubscribed Italian 30Y bond that priced yesterday tighter than expected. Today is the hangover.

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Interest rates could actually go down. Doesn’t mean it could but the message I got from that is as far on the other end is interest rates could stay the same or be a small hike.
Another caravan starting up in SA.I guess all this hoopla from Demos against walls is a invitation. Mexico is not liking it and knows how we feel now but a mayor there put a gag on the protestors social media.

1280 is an area a good Ewave analyst sees and u have some big Av’s @ there, the 65 week and 23 month are @ 1273.

Plus there has been no real reaction since 1160, so a decent pullback could be healthy……if we had a normal/real mkt !!!!