Dec 3rd 2014 – The Bears Must Be Getting Impatient
New all-time highs for both the Dow Jones and the S&P 500! Tomorrow may see a reverse of some shorts meaning the bears will have to be a bit more patient.
I now have a new target of 2090 on the S&P. This should close out this spectacular trend from the October 15th lows and finally allow new members of the site to enter a bloomin’ trade!
I am starting to really feel for the people that have joined in the last month or so. The last thing I can say is get in (not that I give advice anyway). However, this beautiful trend is near the end.
As they say, all good things come to an end and I think by Friday’s jobs report we will see 2090 after which selling will begin next week. Just my humble opinion of course…
Market News:
Stocks extended gains to close at records amid data reports and the Federal Reserve’s Beige Book that said the economy continues to expand.
Stocks held gains immediately following the Beige Book, which analysts did not expect would move markets much.
The energy sector rose about 1 percent and was a leader on the S&P 500, helped by stabilization in oil prices and a report that showed a drop in oil supply for the last week.
The ISM services index beat expectations with a leap to a three-month high of 59.3 for November. Before the open, ADP report on private payrolls showed sector employment is keeping up its recent pace in November, although the 208,000 new jobs was a shade below expectations.
U.S. nonfarm productivity grew a bit faster than initially thought in the third quarter, while sharp downward revisions to compensation pointed to muted wage inflation that should give the Federal Reserve room to keep interest rates low for a while.
Weekly jobless claims come out on Thursday, and the all-important jobs report is due on Friday.
The European Central Bank is expected to discuss monetary policy on Thursday.
Speaking at the Charlotte Economics Club, Philadelphia Fed President Charles Plosser said the Fed’s preferred inflation measure is running somewhat below its longer-term target but is above the level that should stoke concerns of deflation.
The Federal Reserve is only in the early stages of developing a set of macroprudential tools to ensure financial stability and faces limits because of the divided nature of U.S. financial sector oversight, Fed governor Lael Brainard said on Wednesday at a seminar on financial stability at the Brookings Institution in Washington, D.C.
Thursday:
Chain store sales
European Central Bank rate meeting
Earnings: Toronto Dominion, Zumiez, Smith and Wesson, Dollar General, Barnes and Noble, American Eagle Outfitters, Ulta Salon, Kroger
8:30 a.m.: Initial claims
8:30 a.m.: Cleveland Fed President Loretta Mester
1:15 p.m. Fed Gov. Brainard
News Sources: CNN Money & CNBC