Well, today was the first trading day of the New Year, and the early returns seem to indicate that the liquidity flood is continuing unabated.
Commodities were up, as were stocks, and even bonds. Looks like there was money enough floating around for everything to catch a bid.
In a Martenson Report coming out tomorrow, I explain why I think this will continue for a few months. After that, we’ll see.
Today’s action in the stock market was the ever-popular “ramp and park” move, where all the gains are secured in the overnight session in the futures market and the first hour of trading, only to get parked into a 2-point band for the remaining five and half hours of the trading day. These always look suspicious to me, because they imply that there was a mad rush to buy until a very precise new level was hit.
Basically, if you weren’t either pre-positioned for this move or bit during the first 60 minutes, you missed it. That’s been a pretty common pattern these past few months.
Gold had a pretty good day, logging a $20+ dollar gain on the day. However, so did oil, by gaining more than $2 to finish at $81.53. And so did a lot of other commodities like copper, zinc, lead and grains.
One way to view the commodities is via the CRB index, which tracks the price of a pretty large basket of commodities. It broke out to a new high for the move and is flirting with the 500 level for the first time in a long time.
by former_user