Theme for today’s price less fesd? risk On? Reflation? Spoos,5 years, Gold,Copper and Dax all running up to new highs, Bonds have not made new highs but are rallying.What is moving lower aggressively is Oil.Crude oil has taken out the prior 2 day lows as the uptrend appears to have stalled.5 of the 6 most actively traded oil options are Puts and top of a gap price level $51.13( todays lows 51.13) is in sight.A confusing last half hour of trade as One central theme is hard to find to describe the trade.Dollar sideways and Yen moving higher
Copper has had best day in month as China may Cut Reserve requirements on some banks to help stimulate lending also China closed for 1 week holiday may have forced some players to get business done before the long market break.The tax story trade will continue to play out until concrete details and actual Corporate tax levels are known until then I believe markets will trade with the most optimistic view until shown otherwise.We are in a bull market aren’t we?Mizuho believes the russell or small cap stocks will be biggest beneficiary of Corporate tax cut as measured by a larger increase in earnings compared to big cap stocks.Maybe Quarter end trades starting to show up causing the confusion over last hour of action.NDX down a few ticks as Apple lower by .6% along with other tech hardware peers.Whereas Amazon,Goog up on day
Stocks,Short term treasuries,Gold and Yen all higher.Dollar,Bonds and especially oil lower, markets marching to their own beat .Just released 7 year auction bullish for prices as Yield lower than WI and Bid to cover higher than last 5 average.
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