The Closing Look
Stocks rallied on Wednesday after the Fed minutes showed they are concerned about a stronger dollar. Mortgage applications fell by 12% last week, from two weeks earlier as rising interest rates hurt. Separately, Fiat Chrysler, Ford Motor and General Motors all reported better-than-expected auto sales for December, which helped their stocks rally. U.S. auto sales for December came in at 18.4 million, versus an estimate of 17.7 million.
Gary’s Thoughts: Everyone is now bullish…that’s the main complaint…but…steel now looking ready again…financials just sit in another flag with a few names edging out…biotech finally catching a bid…and just not a lot of breaking down. Continuing to also pay attention to gold and gold stocks as the stocks leading the metal again. May just be a counter-trend rally.
SPY / XLF up = market up to re test prior tops.
Gold vs the dollar, both are extended, both can move in their directions,,, a little more,,, predictably…
Q:Butt, what if the dollar breaks up, off the 50 day ma ?
A: gold will fall.
OAL my two indicators are telling me that the market can fall here, but if we do, it will not be much.
In Yoda’s humble opinion, we are rather stuck at the top, with a bias slightly ……. up.