The Closing Look
Stocks ended mixed on Wednesday as the Dow snapped a 7-day win streak. Before the open, mortgage applications tanked by 9% as mortgage rates spiked higher. A separate report showed Home Builder sentiment remained steady. Inflation remained at bay as the producer price index came in unchanged, missing estimates for a gain of 0.3%. Finally industrial production for October was also unchanged, missing estimates for a gain of 0.1%. For the second straight day Nasdaq and Nasdaq 100 type stocks out-performed the Dow & S&P 500.
Gary’s Thoughts: Wild action in shippers…after monster move, some drop 30-50%. Who knows about tomorrow? Finally, financials and other “Trump” stuff starting to pull in. Want to see some more price and time.
By normal convention, the stock market should be pulling back, as the dollar rallies.
It’s not.
The markets are in a rally…, extended…., trend up…., or, they are taking a right turn, bias up…..
Yoda ponders…..
If the markets rally when the dollar rallies,,,, what happens when the dollar pulls back ? Will the extended market, rally even higher on a dollar pullback ? Or, will the extended market pull back with the falling dollar ?
Again Yoda ponders……
If we buy gold as dollar falls,,,, will gold rally(?), or, will the market makers panic, and rig gold to fall with the falling dollar ?
Yoda continues: The answers to these ultimate questions are beyond even the power of “The Force.”
Yoda concludes: For questions this deep, you must knell before the Empire, and ask The Fed.