| | |

The Closing Look

ByGary Kaltbaum
1 Comment

Stocks rallied on Thursday as the market added to Wednesday’s very strong positive reversal. Overnight, the Shanghai composite plunged -6.4% and hit a three-week low. Rumors spread that China’s central bank injected another $52 billion into the money market to help stabilize markets. The ChiNext index which tracks small-cap Chinese stocks tanked -7.7% which clearly is not good for the global risk-on trade. We finally had a strong economic report. Durable goods jumped 4.9%, easily beating estimates for 2%. Excluding transportation equipment, durable goods orders increased by +1.8%.

Gary’s Thoughts: The DOW finished slightly above the 50 day. The S&P finished right on it. Everything else is lagging. Good close. Should lead to more upside but market very very overbought on near term basis here.

One Comment

  1. Even though China finished down, the Nikkie finished 1.5% up, so risk on trade is still carrying imo. China is too hard to call with all their manipulation.
    Interesting to see that the biotechs finished in the red today. Not sure if that means anything or will they catchup later?

Comments are closed.