Market Update

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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