The Closing Look
Stocks opened higher on Wednesday but turned lower before the Dow could reach 20,000. Economic data was light. Pending home sales slid -2.5%, missing estimates for a gain of +0.5%. In other news, GNC said it will close all 4,400 US stores today to overhaul its pricing system. Anthera Pharmaceuticals (ANTH) plunged -65% after the money-losing biotech said its Phase 3 study of its Sulloura drug in cystic fibrosis patients with exocrine pancreatic insufficiency missed its primary endpoint. Today was the first “real” down day since the election rally as the market pulls back to digest its recent move.
Gary’s Thoughts: Well…that was the first day we have seen where best areas look like they are going to come in a bit. Not the end of the world but smiles have to come off the bull’s faces. Notwithstanding we are into end of year and next week will be beginning, little tops may be in place as a few things roll over from the past weeks of tight action.
We are over bought, the market should seek the 50 day..
Q: Which way will the market go ?
A: Technically, we should pull back soon, but,, I dunno, ..we cannot trust those pesky bankers, with their bags filled with shekels..
The dollar:
Q: Will it, won’t it break support ?
A: Dunno, butt, if it does break support, where will the market go ?
…………Up to more over bought, on a weak dollar ?
…………Down, on an over bought market ?
A: Again, ..dunno, ask the banks, they are the folks rigging the market.
Butt; we can pretty much count on something; if the dollar does break down, Commodity stocks will rally, and the Swiss Frank will rally; .. so as for the OAL market, I am going to take that easy money, and not worry about the rest of it.