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The end of the year is very different than how we started…

Cory
December 9, 2016

To wrap up the markets this week we take a look at how things have changed when we look back to the start of the year. The charts are showing continued strength in equities and continue weakness in bonds and precious metals. Investors are moving all in to risk assets.

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Discussion
12 Comments
    Dec 09, 2016 09:45 PM

    For the experts. Should I chase SPXL, QQQ, and UDOW up? Or chase SPXS, SQQQ, and SDOW down?

    Dec 09, 2016 09:25 PM

    US STOCKS-Wall St hits record high for third day in a row

    * Russell 2000, Dow Transport hit record highs

    * Healthcare, tech stocks power rally

    * Broadcom top stock on S&P following results, forecast

    * Indexes up: Dow 0.21 pct, S&P 0.27 pct, Nasdaq 0.5 pct (Adds details, comments, updates prices)

    By Yashaswini Swamynathan

    Dec 9 (Reuters) – Wall Street’s major indexes hit record highs for the third day in a row on Friday as the post-election rally got a lift from healthcare and technology stocks.

    The “Trump rally” has been roaring ahead since the Nov. 8 vote on bets that President-elect Donald Trump’s policies will boost economic growth and inflation.

    The small cap Russell 2000 and the Dow Transport indexes also hit record intraday highs.

    With the rally about to enter its second month, valuations may come under focus.

    The S&P 500 is currently trading at about 17.5 times forward 12-month earnings, above the 10-year median of nearly 15 times, according to Thomson Reuters StarMine.

    “I think if you are a short-term trader, you may be looking to take profits and you are starting to see a little bit of that in financials,” said Robert Pavlik, chief market strategist at Boston Private Wealth.

    The resilience of the stock market will be put to test after the Federal Reserve’s policy meeting next week, where traders expect a 94 percent chance of an interest rate increase.

    At 11:08 a.m. ET (1608 GMT), the Dow Jones Industrial Average was up 40.95 points, or 0.21 percent, at 19,655.76, after hitting 19,671.84. This is the 11th all-time high for the index since the election.

    The S&P 500 was up 6.09 points, or 0.27 percent, at 2,252.28, slightly below its high of 2,255.06.

    The Nasdaq Composite was up 27.09 points, or 0.5 percent, at 5,444.44, after hitting a high of 5,450.16

    Six of the 11 major S&P 500 sectors were higher, led by a 1.03 percent rise in health stocks and a 0.5 percent rise in technology.

    Pfizer rose 2.68 percent and Merck 1.7 percent, giving the biggest boost the healthcare index.

    Other pharma stocks helping the index were Bristol-Myers , which rose 3 percent after raising its quarterly dividend; and Biogen, which gained 4.1 percent following positive data on its Alzheimer’s drug.

    Financials, which have been the best performers in the rally, were off 0.25 percent.

    Broadcom was the top percentage gainer on the S&P, rising 5.3 percent after the chipmaker reported upbeat fourth-quarter results and doubled its dividend.

    Coca-Cola rose 2.6 percent and was among the top stocks on the Dow after the company said Muhtar Kent would step down as chief executive and named Chief Operating Officer James Quincey as his successor.

    Advancing issues outnumbered decliners on the NYSE by 1,427 to 1,361. On the Nasdaq, 1,682 issues rose and 1,015 fell.

    The S&P 500 index showed 45 new 52-week highs and no new lows, while the Nasdaq recorded 288 new highs and five new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’Silva)

    Dec 09, 2016 09:29 PM

    Last December when the fed raised 0.25% the ETF “GAZ” shot up like a rocket? Why – well they apparently have a bunch of leveraged treasuries.. the move up last year wasn’t due to natural gas, but the rise in rates of the assets on their books.. Not saying this is a repeat, but GAZ has really got a bid the past few weeks.

    GULTU is on my radar, its got 1 of 20 wells in production but its last Q3 report was earning $$ at 2.25 per mcf and since sept the nat gas has soared.

    GULTU might be worth a look. Everyone is printing EURO, JAPAN, FED may restart QE.. if nobody buys the FED TREASURIES….

    I think JNUG will soar DEC 15, but its a bounce to get out , same with NUGT might be a big bump up but not sure its time to go long yet.

    I don’t believe China will line up to buy treasuries in the future.
    DB is getting 10% buy in from China? If DB goes bust, Barclays and Citi will be falling a lot due to interest in DB, this will be blamed on whatever but do people realise China is going to be the holder of the Bad Mortgages in the USA… if the china BOC buys into DB, then China through DB is going to be holder of the Debt of millions of USA Mortgages… am I wrong in connecting the dots this way? Do you see what I see happening here… pretty darn scary. China will be holding the notes on millions of US homes and Trump is bad mouthing them … can see this ending nicely.

    I think the black swans are heading to North America, they were supposed to go South but they said they were turned around at mexico because of a wall or something…

    Dec 09, 2016 09:04 PM
    Dec 09, 2016 09:36 PM

    Jim Mellor saying that BREXIT is now a side-show and that Italy is the major EURO crisis for 2017.

    https://www.youtube.com/watch?v=PNoWOJ_btuM

      Dec 09, 2016 09:41 PM

      Thanks Bob UK NICE !

      Dec 10, 2016 10:31 AM

      Oops, typo – Jim Mellon

    CFS
    Dec 09, 2016 09:09 PM
    Dec 09, 2016 09:10 PM

    Gold closes below $1160 by 50 cents. Its barely below that number but below it nonetheless. Big week coming up! Its so oversold, i wonder how big the selloff could be if yellen raises rates? If so, what oversold levels could be reached?

      Dec 10, 2016 10:00 AM

      The rate hike is a certainty now – the question is what she says when she raises about the general state of the economy.

    CFS
    Dec 10, 2016 10:57 AM

    Gold Rate in Mumbai

    Daily Gold Rates
    Date Standard Gold (22 K) Pure Gold (24 K)
    1 gram 8 grams 1 gram 8 grams
    08 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    07 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    06 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    05 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    04 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    03 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    02 Dec 2016 ₹ 2,810 ₹ 22,480 ₹ 2,938 ₹ 23,504
    01 Dec 2016 ₹ 2,844 ₹ 22,752 ₹ 2,975 ₹ 23,800
    in Rupees