The Dow traded mixed most of the session but closed higher by 15 points to 20,837 making this the 12th record session in a row. Trading volume, according to IBD, was mixed. Investors seem to be waiting for President Trump’s speech before Congress tomorrow night. Another item of interest is the much anticipated IPO of Snapchat which is scheduled to occur later this week.
After an impressive 12 day run in US markets, Swiss investor Marc Faber, HSBC and Citigroup are all sounding warnings about the US stock market being in danger of a correction. On the flip side Investor’s Business Daily (IBD), which I consider an indicator of the collective wisdom of millions of investors, currently shows no signs of markets being under pressure although they said that a mild correction could be healthy. While the ratio of bulls vs. bears is over 60%, the VIX or “fear index” is currently showing low levels of volatility. Corporate bond markets, according to BTS, are not signaling any red flags either. Stay tuned.
While political uncertainty in Europe seems to be the order of the day, eurozone economic activity might be picking up as the European Commission’s Indicator of consumer confidence rose to a reading of 108 which is the highest level since March of 2011.
Gold was off $6.30 an ounce today to $1,252. WTI crude oil was flat at $54.04 per barrel. Oil had been up earlier but settled back on strong US stockpile data. Some gurus are calling for oil to reach the $70 price range this year if developed economies in Europe, China and America show improved economic progress.