Traders are now thinking or hoping that the Fed rate hikes may soon come to an end. Isn't it funny how the thinking moves one way and then the other on this issue? Why doesn't the Fed just tell us that they are focussed on one or two indicators, and that traders could take their clues from that as well?

What a stronger bond market will do here (the near-term) is to push up the commodities (ever higher) and the utilities stocks, and some of the financials like Countrywide Financial (NYSE: CFC).

Is there any end to these higher oil and metals prices? Yes, there will be an end to the cycle, and it is likely to happen when inflation fears, i.e., fears of rising interest rates, put an end to trader enthusiasm and their appetite for risk. That sentiment would serve to back down the commodity prices -- for a brief period at least.

Crude oil has inventory and production issues that are linked closely to consumption. So too does copper, but in the case of the red metal, there is a much longer lead time between global demand and supply.

Even more so is the huge gap between speculative demand for precious metals and supply. In that case, goldminer production as well as inventory sales from central bankers cannot cope with today's speculative demand. As long as traders want gold and silver prices to go higher, that demand will take it a lot higher.

As you know, I believe the intermediate-term cyclic action will take $SILVER to $15 and $GOLD to $625.

And the more that bonds are strong in the short-run, say beyond a day or two of bear market corrective action; it shows me that traders are thinking that the Fed is their friend.

Later in the day, I'll have a closer look at the whole U.S. interest-sensitive market.