The Morning Look
Market Update:
Stock futures are higher ahead of Tuesday’s open as investors wait for a slew of earnings to be announced this week.
Gary’s Thoughts: Not just higher…very much higher. As you know, markets have edged down to vital support…and this morning, that support holds as markets up almost 1% BEFORE THE OPEN.
NFLX nice gap up on better numbers. Dow names GS and UNH also up. Dow names IBM and JNJ are down.
Keep in mind, the tape has become a mess but the major indices only dropped to support. Let’s hope this is a launching pad-type move into the end of the year. We are getting near the November/December period. Also keep in mind, every strong up day has been met with a bad down day and vice-a-versa.
Economic Calendar:
- Consumer Price Index 8:30 AM ET
- Redbook 8:55 AM ET
- Housing Market Index 10:00 AM ET
- 4-Week Bill Auction 11:30 AM ET
- Treasury International Capital 4:00 PM ET
Highlights:
- Apple Dramatically Scales Back Its Big Automotive Plans
Gary’s Thoughts: Good! - Rents Are Down in Manhattan. You Still Can’t Afford to Live There
Gary’s Thoughts: Bubble! - Goldman Says U.S. Bondholders Risk a $1.1 Trillion Hit if Rates Spike
Gary’s Thoughts: You damn straight. Bubble!
Is it true that banks will pay off derivatives before savers?
Hummm…. rally into year end….. ?
I’d bet yes..
I’d bet they rig it to rally,, as usual..
Butt.,,tt .. look at the dollar ( UUP).
It is now trend up,, abet extended…
The dollar could easily pull back here, ( equals amarket rally ) but that dollar pull back is to rising 50 day support on the weekly chart, ( 20 day on the daily ), that says a pull back of 25 cents in the uup, then, “technically”,, the dollar should rally off support, forcing the market back down.
Yoda says:
If the dollar rallies off the 50 day on the weekly, that will kill any year end stock market rally.
.
.
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Which ,, if you think about it, makes a year end ( Christmas rally ) rally entirely up to the banks. Will they/wont they drive down a rising dollar ? …..?
If yes, the dollar falls, and the market rallies into Christmas.
If no, the dollar rallies, and market falls into Christmas.
My bet, we have a Christmas stock market rally,,, but in reality, it is entirely up to the UUP, and the banks.