The Closing Look
Stocks fell on Monday led lower by falling energy prices. Over the weekend, the G20 said it will use ‘all policy tools’ to lift growth after the Brexit vote. Later this week, The Bank of Japan (BOJ) and The U.S. Federal Reserve are slated to meet and a slew of earnings will be announced. Central banks continue to throw everything (including the kitchen sink) at markets and for now it is working. Gary has told you, eventually, it will end badly.
Gary’s Thoughts: No biggie day…unless you own Gold and Oil. More oil stocks breaking down as oil prices continue to swoon. Gold just in pullback mode. Remember, crapload earnings coming out…many Dow names this week…and yes…the Fed.
Humm…
The dollar (UUP) is badly extended, and could come down easy.
The IEF ( 10 year bond ) is badly extended, and could rally easy.
If the uup pulls back, that will rally an overbought market.
If the IEF rallies, that will pull back and over bought market.
My two special indicators are telling me the market is badly extended, but could break either way. For now bias to the up side.
My conclusion:
If /when this market breaks, it will either break to the up side on a falling dollar, or to the down side on a rally in the bond.
Any way you look at it, the market goes where the fed wants it to go, ….they are the folks who print the Jew poo,, and it’s poo craped from a banker’s rectum, which fuels the market.