The Morning Look
Market Update:
Stock futures are higher before Friday’s open one day after the ECB announced 2.4T in easy money and extended its QE program until December 2017.
Gary’s Thoughts:Easy money continues while we now look to get an ease up on regs and taxes and mandates and fees and fines. Markets love it.
Economic Calendar:
- Consumer Sentiment 10:00 AM ET
- Wholesale Trade 10:00 AM ET
- Baker-Hughes Rig Count 1:00 PM ET
Highlights:
- Trump Says China Will Have to Play by Rules Under New Ambassador
Gary’s Thoughts: We actually think this jawboning may work. - ECB Expands Stimulus to $2.4 Trillion as Monthly Purchases Slow
Gary’s Thoughts: Why not?
We are looking at a classic stock market overbought signal:
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Oal ( overall ) the stock market is ,, extended, aiming skyward , and looking rather like a rigid roman spear.
Half of my leading indexes are in rally,,, vertical, extended.
The other half;…of my leading indexes are also in rally, but in early stalling,,, vertical, extended.
Of my two secret indicators , one is laying there; lazy as a dead turd, and the other is acting like a paranoid jack rabbit, ……..and that, is a huge short signal!
Butt,, we have Christmas rally season, and the market, …..do not want the market to fall.
And, we have the fed, and the fed do not want the market to fall.
Butt, the signal is for a pull back…
Will the market pull back here ?
Yup !
Butt, take a look at smh, and qqq, if the market falls, they will hit the 50 day MA first, and those two alone could hold up the entire market. I’d not take a serious look at a short till they both break thru the 50d moving average, and by then, it will be too late to short anyway.
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The dollar:
It’s now at the top of it’s range.
Dollar up=market down.
Butt, the dollar is now extended, so the bias is a pull back down,,,, and that likely will force the over bought market right back up !
Short this market ?
Ya, there could be a short here, but I’d bet it wont be much.
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Yoda is watching the market; but, Yoda is trading the dollar.