SHORT TERM: stocks gap up slightly at the open.
Overnight the Asian markets were mostly higher, with only China’s SSEC sheding a few points. Europe came in about 0.30% higher, and our stock index futures had a positive bias going into the open. At the open, stocks gapped up slightly, but quickly closed the gap before 10:00. At 10:00 the Consumer Conference board announced Jan. Consumer sentiment to be the highest it has been in nearly five years: at 110.3. Considering the deflated real estate market and auto industry, this is a very positive reading in our consumer driven economy. It also illustrates the ever decreasing impact of manufacturing on the economy. Bonds are up a few ticks, Crude up 60 cents after it was reported that the Saudi’s will again decrease production in the coming months, which they have been doing for about two years. Gold is up 60 cents and the Euro is on the rise. Technically, the market continues in a narrow trading range as it edges higher from fridays lows. As it remains in a positively biased holding pattern, awaiting the Q4 GDP tomorrow, and the FED’s short term interest rate determination. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.