Russian Submarine Test-Fires ICBM

The Russian Northern Fleet’s Yuri Dolgoruky tactical nuclear submarine has successfully test-fired a Bulava missile from the Barents Sea and hit all the designated targets at the Kura practice range in Kamchatka, Russia’s Defense Ministry reported on Monday according to Russia's TASS news agency.

The 3 Reasons Why Goldman Just Turned Bullish On Gold

"Much of the focus has obviously been on oil where concerns are that expanding supply in the US and Libya will counter OPEC cuts. Gold has received less focus, although its cross-asset correlations have quietly been rising to new extremes."

Senate GOP Releases Revised Healthcare Bill

Senate Republicans, led by Mitch McConnell, have just released 'modest' revisions to the "draft" healthcare bill that was dropped last week.  The only substantive change appears to be the addition of a "waiting period" on those who allowed their coverage to lapse for a period of 63 days or more during the prior coverage year.

The Fed's Third Mandate Is Official

"The FOMC wants stocks to stop rising, and they will keep raising rates until they stop... It is stunning that markets are not taking these words more seriously..."

Traders Scramble To "Explain" Sudden Nasdaq Swoon

"Explanations" differed as to what spurred the 1% swoon in Nasdaq stocks an hour into trading, with everything from the velocity of last week’s rally, this morning’s economic data and the Supreme Court’s decision to hear arguments on the Trump administration’s travel ban and being cited.

How Much Longer Can Junk Bonds Ignore Tumbling Oil? UBS Has The Answer

"If oil prices fall to $40 or below, the negative impact on rest of world profits could be a material headwind for aggregate corporate profits, and a prolonged $40 oil price would trigger more stress and defaults in lower-quality HY issuers heading into 2018."

Signs Of Excess: Crowding & Innovation

It is not until very late in the “bull market” cycle that individuals return to the “casino.”  Of course, this is after a long period of being chastised by the mainstream media “for missing the rally” and admonishing advisors for not “beating the market.” Everyone should just buy an index fund because “this time is different” and there is an overwhelming perception that there is “no risk” of chasing “risk.”

Robert Soros Steps Down As President Of Soros Family Office

Robert Soros, 53, the eldest of George Soros' five children and currently deputy chairman and president of Soros Fund Management, is resigning from those roles and stepping down from day-to-day management to invest his own money at the $26 billion family office according to Bloomberg.

Will Gold's Tumble Continue? Here Is Citi's Answer

This morning's flash-crash dump of over $2 billion notional in gold futures broke numerous technical levels, but as the precious metal bounces back off support, the question is will the bounce continue? Citi answers...

Gold Flash Crashes As "Someone" Dumps $2 Billion, "Fat Finger" Blamed

Shortly after 4am EDT, as the European market was warming up for trading, Gold suddenly plunged $12, or 1%, to $1,242 an ounce, on a surge in volume with 18k contracts, or just over $2 billion notional, trading in a one-minute window; as of 9:20am London, volumes running around 150% of recent averages. As so often happens, the gold plunge dragged silver down with it as well.

Fed's Dudley Had Some Worrying Remarks During A Closed-To-The-Press Session

"...when financial conditions ease—as has been the case recently—this can provide additional impetus for the decision to continue to remove monetary policy accommodation." Said otherwise, Dudley wants financial conditions tighter, and stocks lower, and will keep hiking rates until the market reacts accordingly.

Even The Fed's Own National Economy Activity Index Just Collapsed In May

Lies, Damned Lies, and Fed Press Conferences. The incessant outpouring of confidence in the future of economic growth in America espoused as reasoning for raising rates (when all around them, signals are collapsing) just got another slap in the face... this time self-inflicted.

Durable Goods Orders Tumble (Again) In May, Still 5% Below 2007 Peak

Following a big drop in April (revised worse), May's preliminary durable goods orders tumbled 1.1% MoM (the worst since November). Across the entire report, numbers disappointed with Capital Goods Orders and Shipments both dropping considerably more than expected. And as a reminder, Durable Goods Orders remain 5% below 2007's peak (while the S&P is 55% above its 2007 peak).

Key Events In The Coming Busy Week: Yellen, Inflation, Durables And GDP

The main releases this week are the durable goods report on Monday, the Q1 GDP revision on Thursday, and the personal income and spending report on Friday. There are also many speaking engagements by Fed officials including a speech by Fed Chair Yellen on Tuesday.