Bill Ackman sparked a modest rally after he made a statement that he was closing his bond short position, citing “there is too much risk in the world to remain short bonds at current long-term rates.” At the same time, he added, this is confirming what we’ve insisted all this time “the economy is slowing faster than recent data suggests.”

Bonds are driving everything. The TLT is up, and so is everything else, from the QQQ (Invesco QQQ Trust) to SMH (Semiconductor ETF) - with the exception of oil.

The Energy sector is in focus, following the second mega-merger in the industry in less than two weeks. This morning Chevron (CVX) agreed to acquire Hess (HES) in an all-stock transaction valued at $53 billion.

Busy week ahead with the highlight being the latest US PCE reading on Friday.

Let’s see how things trade into the close.