Impoverished Ps.

If the latest news out of Syria are confirmed, one can not only kiss last weekend's so-called "ceasefire" goodbye, but a full blown war may be about to erupt. The reason: moments ago the Syrian Army General Command reported, and shortly thereafter the Russian military confirmed, that US-coalition forces struck the Syrian airbase at Deir el-Zour, killing at least 62 Syrian army troops, "paving the way" for ISIS militants to advance in the fiercely contested area..

For now, the biggest loser is Treasury bonds - which are up 2-4bps in yields post-China. As for everything else - buy it with both hands and feet. US equities are extending tech gains (Nasdaq up 3% post-cash close), Gold has surged back above its 200DMA, Commodities are all loving it and the USD is bid... The last two days have been quite impresive... But bonds are suffering as gold leads the reaction With gold breaking back above its 200-day moving-average... Europe is loving it too...

To say that China, which a few days ago reported GDP of 6.9% which "beat" expectations and which a few hours ago reported Chinese home prices rose in more than half of tracked cities for the first time in 17 months, stunned everyone with its rate cut on Friday night, meant clearly for the benefit of US stocks, as well as the global commodity market, is an understatement: nobody expected this.