JV Research LLC. Tuesday, November 21, 2017
The markets started the Thanksgiving Holiday week on a positive note, basically recouping all that was lost on Friday’s freaky, November Option Expiration. Yesterday’s rally was led by the DOW, up 70pts with the help of components, MMM, BA, IBM and HD which added about 60pts to that Index., However, the Russell 2000, which dropped down to 1450 last week, also had a good day, with winners outpacing losers by a 17/11 margin and closed just 12 points away from its all-time high at 1514. Even though the markets in general, have had a difficult 2 weeks, the DOW, S&P, NASDAQ and Russell are now all within spitting distance of their all-time highs.
Right now the markets only “fly in the ointment”, is the Transportation sector, which is now off 5% from its high at 10,038, which is not really a big deal, but since the Transportation Index is considered a a “Leading Economic Indicator” it has to be watched, because if Planes, Trains and Trucks, aren’t delivering stuff, the Economy isn’t growing and with everything at or near highs, that could be trouble, so pay attention.
Technically, last week’s selling, brought the averages down to oversold territory for the first time in months, so now the Indexes have positive “W” patterns and with no data of import today, the Major Indexes have achance to trade back up to their highs at DOW 23,560, S&P 2594 and NASDAQ 6793. If the markets fail today, making a run tomorrow, may not be so easy, due to the release of the October FOMC Minutes tomorrowafternoon, plus with the upcoming Holiday weekend, money may head toward the sidelines, so, if you are looking to lighten up, take advantage of any rally and sell into it.
Overnight the Global markets traded higher across the board and in early trading the DOW is up about 60pts, the Yield on the 10 Yr is flat at 2.36%, the Dollar is higher and Commodities are up a bit, with Oil trading at $56.60 and Gold back above $1280.
Right now it looks like the markets are now just waiting to see, if the Republicans in the Senate, can pass their Tax Plan, but with Congress away for the Holiday, things may be on hold until next week, so take advantage of any rallies and always be on the lookout for opportunities on lagging issues.
Today’s Early Markets;
DOW Futures— up 60.00 London – up 14.58
S&P – down 700 DAX – up 72.76
GOLD—$1280 Dec Nikkei — up 154.84
OIL— $56.60 Dec HangSeng — up 557.45
DOW RESISTANCE 23,540 S&P RESISTANCE 2588/2592
DOW SUPPORT: 23,400 S&P SUPPORT: 2575
$NASDAQ RESISTANCE 6830
$NASDAQ SUPPORT 6750