Friends
It’s been a little different type of week than we have seen for a while. For one thing stocks were actually down for the week. Haven’t seen that for a while. Ironically, the economic news was rather positive for the week. The unemployment claims number was pretty good, new home sales were good and the durable goods number was better than expected. What occupied traders’ minds this week was, of course, the Federal Reserve and when they might or might not start to take the punch bowl away. Here we are once again at the crossroads of good news or bad news. Which do we root for? Of course we want the economy to get better, right? But wait, if it does the Fed might change their course and take away our candy. So then, are we left to root for bad news? You know, if the news is bad, the Fed can’t take the heroin away. Good Lord are we really that bad of junkies, that we can’t trade this market without the Fed in our corner (have I used enough analogies and metaphors for one day?). Are we resigned to rooting for bad news so that the Fed will stay accommodating? This week might be a warning that the transition from accommodation to tightening may not be very smooth. But, folks the transition has to and will take place at some point in the future.
Anyway I digress. For the day the Dow Jones Industrial Average was up 8 points (after having been down almost 100 points in early trading) to close at 15,303. The S&P 500 was down less than a point to finish the day at 1649. Gold was down $9 to trade at $1382 per ounce, while oil was down $.28 to trade at $93.97 per barrel WTI. The S&P looks to be developing a trading range with 1657 serving as resistance to the upside. If we get through that again, we could have a bullish close to the month. If not, well we’ll just have to see.
The office will be closed for Memorial Day on Monday, but we’ll be back at it on Tuesday. Let’s remember all who have served this country this weekend. We owe them our endless gratitude.
Have a great holiday weekend everyone.
