Stocks are almost 30 points off their lows and up 1.4% on the day. Yet the positive correlation with energy and industrial metals is nil. Oil settled 1.4% lower at $88.91 and copper is down 1.6%. Bonds are mixed on the day after an auction that demonstrated a demand for safety. The only way this trade makes sense is on lowered inflation expectations. Is that what’s happening? The combination of a consumer slump and no further US QE sparking disinflation? That would also explain today’s fall in metals.