Stocks continued to rebound but the trading volume was tepid at best, meaning that big buyers are keeping to the sidelines. IBD has now switched to “market in correction” while BTS is still long high yield noting that stocks posted a bigger percentage drop than bonds during the festivities last week which, by the way, may not be over. At the close today the Dow was up 410 points to 24,601. Trading volume was lighter than a feather.
President Trump unveiled his infrastructure plan and it basically comes in two parts. Part A is the funding and this is done through a $200 billion chunk of gubment money that will be block granted to states as matching funds or some such arrangement. Part B is a rewrite of the rules concerning permits and environmental impact statements in order to make it easier and quicker to get approval and start the process of construction. The $200 billion funding comes from taking slop from other parts of the gubment trough.
The market pullback last week took energy prices lower. WTI crude oil today was below $60 per barrel trading at $59.37. Natural gas has fallen hard and now sits at $2.56 per MMBTUs having sold off as warm weather is in the cards.
I scouted out the Vance Creek RR Bridge on Saturday and it was cool but I learned quickly that it tends to scare people since it is the 2nd highest RR bridge in the US. If we put it into the hike rotation we will need to come in from the south in order to get onto the bridge. I think the lunkheads will love it.