Thursday, May 29, 2014

Good Morning America, How Are You?

Yesterday, I fixed my snowblower.  No I don't need a snowblower at this time of year, but now is the time to fix winter equipment.  I replaced the drive belts that broke when rocks got jammed up in the paddles.  I love it when I'm able to fix something, as I'm so inept mechanically.

It rained all day (off and on) yesterday.  My early blooming peonies are not happy, and what looked like a spectacular season for peony blooms has been most ruined.  I will have to look forward to the later blooming.  Iris are just now starting to bloom.  Is any one like me, in that the perennial flowers bloom spectacularly, but the bloom last too short of time?  I will plant marigolds soon.  They provide cheer all summer long.  There are so many things I like about marigolds. 

Summary:

1.   As you know, yesterday, the USA stock market set a new historical high and set a new historical closing price.  Disappointing news?  So what? 

2.   I'm sure you have read several explanations of why the market is moving higher, but the reasons for this move are all over the place.  Sell in May and go away?  That advice is looking like iffy this year.

3.   Apple is leading the markets again as it gained 1.8% yesterday.  In turn the NASDAQ is gaining in price after trailing the S&P 500 and DOW for all this year. 

4.   US Treasury 10 year note rallied for 2 hours, and then fell.  That increased the yield by one basis point to 2.46%. 

5.   Later today, I will talk about the low trading volume in the US equity markets.  Volume is very light, with the final tally yesterday being the lowest volume of the year. 

6.   Russia and Ukraine are meeting today to settle their gas dispute.  The EU of course is very concerned as Ukraine is the transit nation for half the gas Russia sells to the EU. 

7.   S&P 500 is reaching new historical highs.  Is the market overbought?  I will attempt to answer this in my newsletter.   However, at this point, most economic data is mixed.  You just cannot come to a rational conclusion from that data.  Technical data is also mixed. Specifically, sectors that normally lead a bull market are not leading, and defensive type sectors are leading.  But of course, then there is health care which is skying.  Small Caps are still lagging, and that is abnormal for a bull market, but who knows, maybe that will turn around as well.