The markets bolted higher at the bell thanks to positive trade news regarding China and the US. The Dow was up 298 points on lighter trading volume to close at 25,013. Both IBD and BTS indicators continue to show “green”.
Over the weekend China and the US agreed on trade terms that will end the tariff battle with the US dropping tariffs on 150 products and China ending tariffs on 50 different US products primarily in agriculture. Early indications are that China has agreed to buy $50 billion more in US energy alone primarily LNG. They also will buy more US infrastructure, tech and Ag products. Shares of Ag stocks and big manufactures like Boeing, Cat, GE and Deere all moved higher on the news. Tech stocks also did well as it appears China will buy more US chips and that IP rights will be protected.
US lumber prices are skyrocketing as spring demand is outstripping supply and buyers are overwhelming mills. The Random Lengths framing lumber index was up $25 last week moving further into record territory and closing at $568. Wood ticks are calling this move “unprecedented”.
Over the weekend the Boy Scouts attended the annual camporee at a camping area along the banks of the Yakima River. The weather started out good and we had 40 of our lunkheads competing in various events. We won the SPL race but overall troop awards were delayed when a violent rain storm hit and it became clear that the Yakima River would crest its banks and flood the camporee grounds. The leadership then made the decision to “get the heck out of Dodge” and, like Noah and the Ark, the scouts were loaded two by two onto the bus at 10 o’clock Saturday night for the trip back to Seattle. Overall the scouts had a blast. As they seem to enjoy unexpected challenging events. Some new scouts found out the hard way why you put raingear on BEFORE you get wet instead of after! The poor buggers looked like drowned rats.