* We had a very significant day in the currency and gold markets yesterday

* We had some good follow through today that really buttresses the point that I want to make

* We got some economic news that was released yesterday that would have been considered bullish for the dollar and bearish for gold

* By most people, other than me, who trade currencies and who trade gold

* But the fact that gold did not sell off or the dollar did not rally was very significant

* The news was the CPI and Retail Sales

* First of all, Retail Sales came out stronger than expected, they were looking for a gain of .1% and we got a gain of .4%

* They actually revised the prior month's gain from +.6% to  +.1%

* Now a lot of the gain in retail sales, though has to do with the fact that prices are higher

* Retail sales are not adjusted for inflation

* Prices are going up

* Retail sales may be going up, particularly things like gasoline

* It's not just the price of gas that's going up; everything is going up

* The CPI came out at the same time as Retail Sales and that is the bigger number

* We got a .6% rise in consumer prices

* That's versus the expected .3%

* Even the core - you take out food and energy - we were up .3% there versus an estimate of .2%

* Year over year CPI 2.5% that's the official number

* Obviously prices are going up a lot faster than that but according to the government they're going up at 2.5%

* Even if you take out food and energy and just look at the core, year over year the change is 2.3%

* Now remember the Fed is saying their target is 2%

* When Janet Yellen testified this week she said that she's confident this week that we're going to hit her objective

* Well, we've already surpassed her objective