Morning 2-22

Yesterday’s action in Stocks resulted in the first down day for both the Nasdaq composite and Russell 2k in the last nine trading sessions, second for Spx during that time frame. YTD  dow and SPX ~ +10.7%,Russell +16.8%,NDX +11, S&P 600,Small caps+16%, Both SOX (Semi) and KBW bank index  +16.8%. The percent of companies in SPX trading above 50 D MA is 91%, the Highest in 3+ years it goes for Nasdaq at 72% this is not an overbought indicator but something to take note of. I will be watching to see if this percent starts to deteriorate as this could indicate upside Momentum is slipping or has reached a peak. The Fed is never going to hike again trade may again take a hit today as A plethora of Fed Speakers will be at Conference in New York speaking on Inflation, Balance sheet and the Economy.

 Copper having herself a week +6% in Comex 5.2% LME as stockpiles shrink. Per LME statistics, Copper in warehouses would only satisfy 13 days of Demand, near a record low. The cash-3 mo LME spread has been in backwardation for last 6 days, Spot higher then deferred price, touching the highest level at one point in 4 years. Helping copper advance is continuing speculation that US / China trade deal will result in positive outcome, Copper +1.5% so far today.

  Other markets Show oil +1%, Spoos +11 handles, Bunds +40 ticks, Dollar small bid and treasuries steady to higher. All is well in the World optimism regarding China /US trade deal grows, US Deficit is not a concern and Global growth Trade is not an issue.

 Zero Economic data today thus all eyes and ears will be the Fed conference in New York with the First speaker Bostic, Speaking at 7:20.Vice chairman Clarida speaks at 11:00 this is the highlight on the schedule. For good measure Draghi speaks at 10:15.No I.G. corporate deals announced overnight  so it looks like a quiet day ,Some  of yesterday’s  selling in Bonds was  caused by the Heavy Corporate slate of Deals.

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