JV Research LLC. Tuesday, November 28, 2017.
Investors came back from the Thanksgiving Holiday a bit sluggish and aside from some dedicated Buying, in some of the big cap names of the DOW, pushing it to another record close, there was little to no interest for anything else. By the end of the very quiet session, the DOW registered a minor gain, while the S&P, NASDAQ, Russell 2000 and Transportation Index all closed with minor losses. The volume was light, with just 766 million shares trading, matching last Wednesday’s per-Thanksgiving total and losers beat out winners by a wide 18/11 margin.
After last week’s big push, that sent the DOW, S&P, NASDAQ and Russell to new highs, all the Indexes are back in overbought territory and they are all forming negative “M” patterns, which use to mean that a pullback is in order. Unfortunately, over the past year, the “laws of gravity” have been for the most part suspended, mainly due to Machine Program Trading, so what goes up, stays up and what goes down, stays down. Now, this new, one way trading, is great for Institutional Players, who just keep buying with unlimited amounts of money, but for everyone without Billions at their disposal, its not so much fun. I believe that in the end, all this chasing prices higher and piling in on a few names, will end badly, so be patient, wait for opportunities and only buy at the right price.
Overnight the Global markets were quietly mixed, with Asia lower, Europe higher and in early trading the DOW is up about 35pts. The Yield on the 10 Yr is flat at 2.33%, the Dollar is slightly higher and Commoditiesare slightly lower, with Oil trading at $57.60 and Gold holding steady above $1290. The long term Gold chart appears poised for a breakout through $1300, so scooping up some Gold plays might be a good idea, especiallywith the rally in Bitcoin entering the frenzy stage as Hedge Fund Players call for $40,000 in 2018.
All we have on tap for today is the Sept Case Schiller Home Price Index out at 9:00am Overall, I think that the Investors are waiting to hear from the Senate and OPEC on Thursday, so we may be in for a couple of quiet days.
I am working from 80 Broad and can be reached at 212 -417-8062
Today’s Early Markets;
DOW Futures— up 35.00 London – up 34.58
S&P – down 500 DAX – up 42.76
GOLD—$1293 Dec Nikkei — down 9.84
OIL— $57.60 Nov HangSeng — down 5.45
DOW RESISTANCE 23,640 S&P RESISTANCE 22610/2618
DOW SUPPORT: 23,520 S&P SUPPORT: 2594
$NASDAQ RESISTANCE 6900
$NASDAQ SUPPORT 6850