Your Wednesday Market Blip 12/6/17

Your Wednesday Market Blip 12/6/17

Stocks continue to trade in mixed fashion as the Dow fell while the NASDAQ rose. At the close the Dow was down 39 points at 24,140 on lighter volume. The NASDAQ rose a bit on lower trading volume. Stocks appear to be digesting all the news of late.

The BTS indicator is still in cash although bond pricing has improved. IBD still has markets in rally mode but the NASDAQ accumulation rating has fallen to a “D+” indicating selling by institutions. The accumulation rating on the Dow continues to hold at the “A” level meaning institutional buying in Dow stocks continues. These reading show that sector rotation is occurring with money moving out to large tech companies into material, airlines, banks and retail.

Markets appear to be taking a wait and see attitude toward tax cuts pending the reconciliation process. In economic related news the ISM service sector came in with a reading of 57.4 which is off slightly from October’s pace which hit a 10 year high. 16 of 18 sectors are showing growth and forward indicators are still comfortably in expansion territory.

Yesterday while talking with one of our Christmas tree growers he indicated that, while the bulk of his business is local, for the first time ever had shipped trees to Dubai. He said they had wanted 13 containers but he could only fill 3 since supplies are tight. He said he also ships trees to Hong Kong each year and told me that having a live tree in your house in Hong Kong is a status symbol and highly sought after among the elites of the region. Interesting. I did not ask him if he took payment in bitcoin.