On Tuesday, the averages traded slightly lower on 520 million shares and on Wednesday, the averages traded
first up a little, then down a little and then closed up a little on 548 million shares and if there’s going to be a Santa
Claus rally in the last 2 trading days of 2017, Santa better round up some Investors, because it looks like everyone
would be content to close the books now. So far this week, it looks like we are seeing a minor rotation out of Tech
and the Financials into the Retail, Metals, Miners and Commodity Sectors. Now if this is just end of the year moves
by Institution Players and Money Managers, then next week, what was up this week, should go down and what was
down, should go back up.
However, if this is the beginning of a major shift of assets, then we will witness a Classic run in Commodities that
Market Players haven’t seen in 10 yrs. So, make a list of Commodity names you might be interested in buying and also think about what Tech names you might want to trade, especially if the selling gets panicky. Overall, we had very little Volatility in 2017, but if the action picks up, 2018 may be a very good year.
Overnight the Global markets are mixed and in early trading the DOW is up about 40pts. The Yield on the 10 Yr dropped hard to 2.41%, as Rates in Europe fell, bringing Buyers to our Treasury markets sending our Rates lower. This morning Rates are ticking higher to 2.45%, the Dollar is falling and Commodities are higher across the board and Copper now up 16 days in a row.
Today we have the Weekly Jobless Claims out at 8:30 then the Chicago PMI report at 9:45 and later at 11:00 the Weekly Oil and Gas Inventory reports. Last night the API Inventory report showed a drop in Crude Supply, but a build in Gasoline. Overall, I think that with Major Players away, warm somewhere, look for another low volume, slightly higher day .
Today’s Early Markets
DOW Futures— up 40.00 London – up 1.76
S&P – up 200 DAX – down 13.44
GOLD—$1293 Feb Nikkei — down 127.67
OIL— $59.85 Feb HangSeng — up 266.32
DOW RESISTANCE 24,850 S&P RESISTANCE 2688
DOW SUPPORT: 24,650 S&P SUPPORT: 2672
$NASDAQ RESISTANCE 6970
$NASDAQ SUPPORT 6900