Still Hovering Near New Highs
Markets are mixed this morning with the Nazz slightly higher and the S&P just fractionally lower. Since breaking out to new highs last week the major indexes have traded in a mostly sideways fashion. For the last couple years this pattern has usually resolved itself with another move to new highs. We call it the stair-step market.
There hasn't been much in the way of market moving news here in the US. There is no economic data to speak of today. There were a few retailers that reported earnings, and most of the results have been pretty lackluster. Retailers are trading mostly lower as a result.
Asian markets ended higher overnight. The Bank of Japan made no changes to its policy course. In China, the PBOC governor said interest rates are likely to rise by market forces as the country continues on the path towards rate liberalization.
European markets are mixed today. Great Britain's industrial production rose 2.9% year/year. And Italian GDP ticked up 0.1%.
Commodities are mixed again. Oil prices are weaker near $100.66, while gold prices are higher around $1348.
The 10-year yield is pushing up to 2.80% and trying to break above its 50-day average. And the volatility index is lower again to the 14.0 level.
Trading comment: Market leaders continue to push higher. Waiting for the big correction continues to be a frustrating strategy. Sector rotation has kept most pullbacks small. Among ETFs, the gold miners (GDX) look like they have consolidated and might be ready for another push higher.
KAM Advisors has long positions in GDX