What a way to end the year!
Dow 12,510! If only this weren’t a low volume week I’d be really psyched right now but we’ll certainly take what we can get and we got a lot today…
- Dow 12,500 is already in the rearview mirror – can we hold it?
- Transports leaped over the 200 dma at 2,580 and finished at 2,605
- S&P took out 1,425 and proved it’s serious!
- NYSE gave us a new high at 9,179.
- Nasdaq beat 2,425 but we remain unimpressed under 2,450!
- SOX could not break the 50 dma at 70 and is our only danger sign at the moment (but it’s a big flashing one!).
- RUT blew through 790 and still needs another attempt at 800.
The market reacted very well to the housing news today as the earlier drop in mortgage applications (less chance of Fed hike) balanced perfectly with a rise in new home sales, meaning we may have actually cooled the housing market without crashing it! While it still remains to be seen – mega kudos to the builders for putting the brakes on (most of them) without getting into too much trouble.
Oil was a great help to the markets with crude falling all the way down to $60.34 after failing to hold $61 early in the day. With 15 trading days left, the February open contracts still stand at 300M barrels so tomorrow’s inventories will be very telling (of course, without a 100M barrel draw, they are still in trouble!).
Most of the energy stocks kept the faith today and I just couldn’t resitst the XOM Feb $75 puts when they hit $1.70 at the close. Hopefully we can buy some more tomorrow for a little less! Here’s an interesting development – while the ’07 contracts generally dropped .75 today, ’09-’11 contracts dropped over $1 across the board. If you need to lock in some oil for Dec 2012, $64.80 a barrel is the going price!
Come on peak oil guys! This is the opportunity of a lifetime to be the last man in America with a barrel of oil… Demand is rising, supply is falling, Brazil, China, India… 5 more years of depleting our reserves…