Your Tuesday Market Blip 4/11/17

Your Tuesday Market Blip 4/11/17

Geopolitical tensions continue to create bouts of fear and greed in the markets. The Dow opened the day down triple digits or “three fingered jack” as we like to say but then stabilized and rallied back to close down 6 points to 20,651. The trading volume was up significantly but this includes both downside and upside trading. IBD still lists the market rally as “under pressure”.

Gold prices shot higher today as tensions rose in three areas around the globe. One area is Syria, another is N. Korea and the third is the looming elections in France. Commerzbank commodity guru Carsten Fritsch noted support for gold near $1,250 but resistance over $1,275. The rise in gold is seen as a safe haven trade but it could be an expensive one if Janet Yellen continues to raise interest rates thus increasing the carry cost of gold. While gold hedges inflation so do US “TIPS” or Treasury inflation protection bonds which are also seeing safe haven buying. At the close today gold was up 1.7% to $1,275 an ounce.

Southwest Air is hoping to make hay with a new version of its advertising slogan “Wanna get away”? The person in the new TV spot is none other than United Continental CEO Oscar Munzo who is facing backlash after UAL removed a paying customer from an overbooked flight all while being videotaped by everyone on board. As the largest shareholder of UAL, Warren Buffett must surely be banging his head against a wall.