Right now, it appears that nothing can seem to end the persistent climbing of the major indexes. Yesterday was no exception as the markets ended up higher by a few points. Energy and utilities provided a boost along with better-than-expected existing home sales for November. Of course, oil rising above $90/barrel for the first time in 2 years can hardly …
Holiday Cheers
Three things got the markets going early on yesterday. For one, there was some sigh of relief that dangers of another Korean shootout were laid to rest, at least for the time being. Second, rumor had it that N. Korea was showing willingness to let the United Nations inspectors monitor its nuclear program. Third, but not least, in regards to …
Leaving Blue Chips Behind
The Nasdaq quietly made a new 3-year high yesterday, but the Blue Chips were left behind as American Express and Boeing proved to be a drag on the Dow and prevented the index from climbing above the 11,500 level. Interest rates were up slightly, as were gold and oil. The Euro slumped heavily vs. the Swiss Franc and also lost …
Going Separate Ways
Ever since the Fed implemented the latest round of Quantitative Easing early in November, stocks and bonds have gone in different directions. The 3-months chart above shows the SPY (S&P; 500) vs. IEF, the 7-10 Year Treasury ETF. Both hit their respective tops simultaneously (vertical arrow), after which bonds reversed direction and slid as interest rates rose. The stock market, …
Sunday Musings: Thoughts On Inflation And Deflation
The prospect of inflation, along with the destruction of the dollar, seems to be on many readers’ minds. Frank’s question is very typical: I have been reading your newsletter for over 2 years, and I enjoy your comments. I have one question and it is a big one do you think we are really heading into deflation or will inflation …
More Trend Line Talk
In “Reader Question: More On Sell Stops,” reader Jon responded by saying the following: If you buy only when the index cuts above the trend line and sell when it cuts below it you will, by definition, realize profits equal to the increase in the trend line between these two moments in time!While that is correct if in fact the …