Stocks once again mirrored oil as the Dow opened mixed then rallied into the close on very mild volume. The Dow gained 212 to16, 697. Support levels continue to hold and IBD is saying that while things could change, the markets for now have swung back to rally mode.
Well it finally happened! An LNG tanker yesterday set sail from Cheniere’s Sabine Pass export terminal in Louisiana making this the first time liquefied “natural gas” has been exported from the US. It was a historic day an in honor of the moment several officials on hand flatulated in unison since this act seemed more appropriate than drinking Champaign given that LNG is a “natural gas”. The fully loaded ship is headed to Brazil. I hope it avoids those zika mesquitoes.
Trading in Asia was mixed as China’s Shanghai Composite index fell 6.4% while Japan and S. Korean markets were higher. The selloff in China was due to liquidity concerns despite PBOC economic stabilization efforts which, so far, have not been able to protect the yuan from continued depreciation pressures. Several analyst in the US and Europe are warning that continued deceleration of China's growth rate and worsening economic structure (soaring property prices and rising leverage) could weigh on the Sino stocks in the near term.
Gold fell a bit today but is holding well as it is benefitting from global volatility. Georgette Boele, analyst at ABN Amro, said: “we don't expect rate hikes from the Fed anymore ... we expect gold to reach $1,300 by the end of the year,” Other investors like Jeff “Gunny” Gundlach thinks gold is headed to $1,400 as investors seek safety away from foreign currency exposure. Please remember that Gunny called for gold to rally last year but was wrong. He kept his prediction in place for this year however and so far has been right.
WTI crude oil began the day lower but finished up 2.8% today to $33 a barrel as word got out that Russia and OPEC agreed to a meeting in March to discuss production levels.