Monday Morning Musings

The market is once again emboldened by the weak dollar, which seems like a relationship that can't last in the long-term. But in the short-term, the dollar is moving lower and the market is making new multi-month highs.

Over the weekend the G-20 met, and that has helped the euro and yen both rally at the expense of the greenback. This is also boosting commodities, with oil and gold both up more than 1% to $82.70 and $1343, respectively.

Other than that there is not much in the way of market moving news this morning, but that seems to be enough to have the S&P 500 rallying above last week's highs and getting closer to the 1200 level.

Among the sector ETFs, materials (+2.38%) are rallying the most, while utilities (+0.41%) are up the least.

Asian markets were mixed overnight, with China rallying but Japan slumping due to the high yen. The 10-year yield is falling today, back near 2.50%. And the VIX is up a scant 1% to 19.00.

Trading comment: Nothing really new to add to my strategy. The market continues to stairstep higher, and it has made sense to hold on to winners more than trying to trade around them and take profits, looking for a spot to get back in.

The "cloud" stocks that I wrote about a couple of weeks ago (CRM, FFIV, VMW) continue to trade well. CRM and FFIV have recaptured their 50-day averages, while VMW has yet to do so. FFIV reports earnings tomorrow, so there is still one more hurdle to get over. But barring any major hiccup, this group could be back in the driver's seat soon.

Overall, the market is still a little overbought, and I think it will have a tough time capturing the 1200 level this week. Of course, anyone who hasn't given this market the benefit of the doubt lately has been really wrong. Good luck out there.

long CRM, FFIV, VMW