Stock Market Overview:
Futures are down a little ahead of Wednesday’s open as investors digest Tuesday’s very strong rally.
On Feb. 11-12, we told you we thought another low was being put in for the market. Dang! It has been a darn good low.
We must admit, we really started to worry that the nascent rally was ending this past Friday and Monday. But Tuesday’s gap to the upside and strong action ended all that…so the rally off the lows continues.
The interesting part of Tuesday’s strong move was all the “stuff” off the lows turning the corner. Areas like Brazil, Russia, China, Emerging Markets and financials all have moved above their first line of resistance off the lows. If they can hold the move, nothing but good news in the near term.
We are being asked why. Why is the market rallying in the face of some very suspect numbers? First off, there have been some decent numbers to go along with some suspect numbers but do not forget that massively easy money remains the rule of the day. In case you did not know, Japan’s 10 year is now negative and is still printing, China eased again and is still printing, Europe is still printing and promising to do more and now the IMF is calling for a global coordination of stimulus. The IMF obviously thinks the printing of $15-20 trillion is not enough…0% rates for 7-8 years is not enough…negative rates is not enough…so what’s next?
Markets are now the opposite of Feb 11-12. Back then, they were waaaay oversold. Now they are waaay overbought but the good news is the fact that they have been able to get so overbought tells you the strength of this move. Massive overhead resistance is now straight ahead. If we had the market to do our bidding, we would love to see a few days of pull back/sitting to work off some of the move.
- MBA Mortgage Applications 7:00 AM ET
- ADP Employment Report 8:15 AM ET
- Gallup U.S. Job Creation Index 8:30 AM ET
- John Williams Speaks 10:00 AM ET
- EIA Petroleum Status Report 10:30 AM ET
- Beige Book 2:00 PM ET
Highlights Of The Day:
- Super Tuesday Is Finally Behind Us
Gary’s Thoughts: Trump vs Clinton. This is going to get good!
- The Self-Piloting Hobby Drone Has Arrived
Gary’s Thoughts: Just what we want. Things flying over our head! Yippee!