Guess the gap!
“Gary…markets reverse lower yesterday and just gap up today on bad economic numbers. What gives?
What gives? The same as the past 7 years. Bad news=good news especially when central banks are in full mouthing off. Japan 10 year is now negative. IMF says we need worldwide stimulus! (Not kidding) Europe says more to come. China just eased again. Our fedheads now saying their “data dependant” noise is now skewed to the negative. Markets are still in this drift higher off of the Feb 11-12 lows. We’ll leave it at that for today. After all, it’s SUPER TUESDAY!
I think we have reached the limits of this game….if the data is weak, the dollar tanks and the Yen and the Euro rise..meaning those markets fall. The best outcome would be strong economic data, dollar stays steady imo.
2000 internet stocks
2008 subprime loans
2016 subprime government loans
DJIA, S&P500, COMP, RUT, TRAN all forming moving average bow-ties on daily charts as indexes moving up through 50 day MA.. Short term, market becoming overbought. May be time to stick a toe in on a pullback.
Not sure you will get much of a pullback, looks like a very fast recovery similar to Oct15