The Tepper Rally
There really wasn't much news this morning to account for this rally. Overseas markets were mostly lower overnight, and there was no big economic reports out today to speak of. But hedge fund manager David Tepper made very bullish comments on CNBC this morning and that seems to have emboldened the bulls and put them in a buying mood.
Financials and biotechs are leading the early action. Techs are lagging so far, as AAPL is having a down morning so far.
Asian markets were mostly lower overnight. India's inflation rate cooled to 4.89%, its lowest level since late 2009. China's National Petroleum Corp. believes resource demand may wane in the medium-term. That would seem to hint of an economic slowdown.
Europe's markets are also lower this morning. Eurozone industrial production rose 1.0%. Germany's ZEW economic sentiment ticked up to 36.4 from 36.3. And ECB member Asmussen said he favors a swift creation of a "single European resolution regime".
The dollar is higher today, and that is weighing on precious metals. Copper prices and silver prices are lower, while gold is mostly flat. Oil prices are also flat near $95.
The 10-year yield is pausing today near 1.91% after a big multi-day spike. And the volatility index is 5% higher today, which is odd given the rally. But it is still only at 13.19.
Trading comment: We sound like a broken record, but this stair-step market continues apace. After breaking above SPX 1600 around May 3rd, the market has shot up pretty quickly to reach the 1650 level (almost). Folks calling for an imminent correction continue to be perplexed. Who knows how long this rally can last? But buying good market leading stocks on fresh breakouts or tests of support levels continues to work. We continue to shy away from trying to pickups laggard stocks in hopes that they play catch up.
KAM Advisors has long positions in AAPL