The equity week ended on a very bullish note, the SPX breaking a new historic high, settling +32pts (0.8%) to 3699, which made for a net weekly gain of +60pts (1.7%). Meanwhile, WTIC settled +62cents (1.4%) to $46.26, which made for a net weekly gain of +73cents (1.6%).
sp’weekly1b
WTIC weekly
Summary
sp: The fourth week higher of five (an appropriate mirror to the VIX), settling almost at the closing hour’s new historic high of 3699.20. Upper weekly bollinger will be offering the low 3700s next week. I would note the weekly 10MA at 3503, and it seems very unlikely the market will trade under it for the remainder of the year.
Tom Lee’s end year target of sp’3800 is increasingly within range, as more within the mainstream are now seeking >4K by late spring/early summer.
WTIC: a third consecutive net daily gain for oil, making for a fifth consecutive net weekly gain. A run to psy’50 is underway, with secondary of the $52s. Ongoing broad weakness in the dollar is certainly helping.
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Dear Subscriber (or guest!)
With new historic highs, it was just another week for the equity bulls.
Some perspective – SPX, monthly1b
Four days into the month, we’re currently +77pts (2.1%) at 3699. I would note the 10MA at 3236. The bulls need have no sleepless nights unless a monthly settlement under the 10MA, and that looks unlikely until at least April/May.
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Meanwhile, over at Print Central
The latest update showed a net weekly change of +$5.9bn vs -$26.6bn prior week, taking the balance sheet to $7.222trn.
The fed remain on standby to pick up another trillion or so of T-bonds, once the political hacks (on both sides) can agree on stim bill 4. Further, it should be clear, even if its ‘only’ $750/1000bn, we can also be sure of stim bill 5, 6, 7, 8, across the next few years.
*next FOMC announcement – Wed’ Dec’16th, and its possible we might see ‘yield curve controls’ announced.
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Another step along the dark path
This morning’s little skirmish between the Sorkin and Santelli is a fine example of the increasingly polarised society we live within.
There are those who believe in freedom… and those who will compromise. Yours truly was never one for compromise.
Reading around Twitter, it was not surprising to see some of the Karens screaming for Santelli to be fired. After all, how dare he have an opinion that was different from the other mainstream media hacks!
Santelli remains a literal token counterpoint on CNBC. I am surprised he has been kept around this long, rather than the network employing yet another left leaning hack to talk about how higher equity prices are a good thing.
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Ohh, and the following from Denniger (along with the comments) merits reading…
http://market-ticker.org/akcs-www?post=240832
I’m almost surprised that Twitter doesn’t actively block links to Denniger. I guess for the moment, he still flies under their radar. In any case, the election is (to a significant extent) a fraud, and the only issue now… will the result hold, or will this somehow will successfully contested?
Whilst yours truly is on the eastern side of the Atlantic, I see this as a massively important issue for the world. If Biden/Harris take control, then the Republic can be seen as having concluded, with civil war just a matter of time away.
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The weekend
Yours truly needs to rest, but I hope to get a few things done. I will endeavour to cover some things on Twitter, this Sat’ and Sun’ evening.
As ever, feel free to message me via Disqus or email.
Sincerely, have a restful weekend, and goodnight from London
yours… Philip
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The weekend post will appear Sat’12pm EST @ https://tradingsunset.blogspot.com, and will detail ten of the world equity markets.