More Easing On Deck

Dow +36.02 at 18595.03, Nasdaq +53.56 at 5089.93, S&P+9.24 at 2173.02

The Dow climbed to another record close in its longest winning streak in years. But daily gains have been relatively small recently. The Dow has had one move of 1% or more in either direction so far this month, compared with six such moves in June.

The S&P’s technology sector was the index’s biggest gainer. XLK rose 1.3%.  MSFT had a great earnings report and rose 5.3%

In the health care space (+0.9%), biotechnology showed nice relative strength, evidenced by the 2.4% gain in the IBB +2.43%.

The US Dollar hit 4 month highs.


European Central Bank is expected to leave its policy unchanged when it meets Thursday, however, if you follow the fiscal funny pages as closely as I do, then you may remember that Mario Draghi said that he has the mother of all fiscal blunderbusses ready to launch in August…



The Bank of England kept things on hold last week, but has basically said they will release the hounds of hell in August as well.



The BOJ meets next week and you know that they just cant hep themselves soooooo…….


expect markets to act accordingly and trend higher.


Not sure what will get sold to buy biotech (XLP-Staples maybe?) but bio is looking better.

Biotech finally acted well today and it finally broke out of that downtrend that I have been watching for months. And the volume was good.


We shall see if it can stick, but my gut says it will this time. Also, the 4 or 5 main components of IBB all have some every good looking charts right now, so lets hope the push can continue.  Because of this I added LABU which is a leveraged etf that gets you long biotech.

TLGT and VBLT both showed signs of life today as the bio sector improved. Both are still buys, use the same stop that’s on the P&L should you nibble.

Sunday video name PII had a massive move today. If you nibbled, hold on to it.

See you in the morning.



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