STRONG JOBS REPORT BOOSTS STOCKS AND COMMODITIES -- BUT TREASURY BONDS TUMBLE AS YIELDS SURGE --COMMODITY ETF TURNS UP -- GOLD AND ENERGY SHARES ARE BREAKING OUT -- PLATINUM LEADS PRECIOUS METALS HIGHER -- EMERGING MARKET ETF HITS NEW 2010 HIGH

BOND YIELDS SURGE ON STRONG JOBS REPORT... There's good and bad news in Friday's strong jobs report. The bad news is that bond yields are surging. Chart 1 shows the 10-Year Treasury Note Yield (TNX surging to the highest level since last June and heading for a test of last summer's high at 4%. A close through that chart barrier would put yields at the highest level since 2008. That's bad news for Treasury bond prices which fall as yields rise. Chart 2 shows the 20+Years T-Bond iShares (TLT) falling to the lowest level since last summer. In general, rising rates are bad for most bond holdings.

Chart 1

Chart 2

COMMODITY SURGE... Signs of economic strength are usually bullish for commodities and stocks tied to them. Right on cue, the DB Commodities Tracking Index Fund (DBC) is breaking through its March high to register a bullish breakout (Chart 3). While most commodities are rising, the most notable is crude oil which is trading at a new 52-week high over $85. Chart 4 shows the United States Oil Fund (USO) trading higher today and challenging its October high near 42. As I wrote last Thursday, an upside breakout appears likely. Gold and energy stocks are also having strong days.

Chart 3

Chart 4

GOLD AND ENERGY ETFS ARE BREAKING OUT ... I also suggested last Thurday that gold and energy shares, which had been market laggards during the first quarter, should start to turn higher. And they appear to be doing so. Chart 5 shows the Energy Sector SPDR (XLE) breaking through its March high. Chart 6 shows Market Vector Gold Miners ETF (GDX) challenging its March high near 47. I expect an upside breakout there as well. While silver has been leading gold higher, platinum is leading the entire precious metals group in that direction. Chart 7 shows the UBS Long Platinum ETN (PTM) trading at the highest level since mid-2008.

Chart 5

Chart 6

Chart 7

EMERGING MARKET ETF HITS NEW HIGH ... A new rise in Chinese shares (and emerging markets in general) last week also helped ignite more enthusiasm for global stocks and commodities. That positive trend is continuing today. Chart 8 shows Emerging Market iShares (EEM) trading over their January highs to resume their bull trend. That positive trend is being aided by new highs in India and Russian shares.

Chart 8