The Closing Look

On Tuesday, the market opened higher but sold off shortly after the open as a lot of money piled into commodity stocks as the US dollar fell. Crude oil broke out of its latest base and hit a fresh multi-month high. Silver soared over 4% and also vaulted to a fresh multi-month high. Netflix (NFLX), Illumina (ILMN) and International Business Machines Corp (IBM) all gapped down after reporting earnings. Goldman Sachs (GS) rallied even though they reported a big drop in earnings. Economic data failed to impress. Housing starts fell -8.8% to 1.089M, missing estimates for 1.167M.

Gary’s Thoughts: 2 thoughts…GS announces sales and earnings down 4-50% and is bought up…and COMMODITIES. Everything COMMODITIES. The opposite of the bear that went on from the middle of 2014 until early February. One more time…repeat after us…COMMODITIES.