As we can see the renewed theme of rotation, rotation out of technology and into financials and industrials, for example, evidence in the dow. S p 500 in the middle, up. 5 , so benefiting by the surge we have seen in stocks related to the tax cuts passed over the weekend. Another way to look at the weakness we have seen with technology in this chart, looking at the percentage of members of Different Industries with 14 day relative strength index above 70. In other words, are we seeing them overbought at these levels . Look at the s p 500 in blue, the percentage going up even as techs have been going down. Indicator forum this group relative to the broader market, that it has been weakening versus the broader market. On the subject of rotation, if you look at some of the weakest names today, they are in the top 10 performers in the s p 500 this year. Align technology, maker of the invisible line braces alternative, we have ma icron, and we also have lam, Semiconductor Makers that have d
Reachable . Gus brown, pie in the sky forecast or is this legitimate tax liabilities a reduction are lead to Margin Expansion, share buybacks, 20. 5 times multiple as earnings go up and that gets you 3,000 on the s p. I mean, its not pie in the sky historically, but theres a decent probability that that could happen doesnt mean it will happen or anyone can actually foresee that happening. I think he makes a good case though i thought the note was fairly rational, but think about it, he could have written the same words on the same page and said 21 times or 19 times so the art of the p that goes into p e multiple is an art. Its not a science its not math. Its what you think sentiment will be, even if somebody agrees on all of the pieces that he sees fall in to place doesnt mean you arrive at the same sentiment level or pricetoearnings multiple. The point here is the rally is far from over and if you want to put 3,000 on that or whatever number he wants to be the top, hes going to be on
Shanghai was off by 1. 25 . If you look at whats been happening with some early trading, green arrows for the most part. But youre looking at fractional advances the dax is up, just barely cac up by a quarter percent, so is the ftse. Look at crude oil. Up by 1. 1 yesterday settling just below 58 a barrel that was the highest level in almost 32 weeks. Today were at 58. 36 that was the 67th or 68th new high yesterday of the year yeah. Could be another one tomorrow. Andrew is finally coming to the train. Youre getting on the train left the station. Were on the bitcoin train now that train maybe left a long time ago where is the train that left newark he said sao paolo. They offloaded it on to a boat, crossed the water heading to the south pole you did cop to that yesterday. Im i wish i didnt have to but i do. Calling the trump trade and Everything Else i do. A number of big stories to tell you about. We are continuing to follow a developing story out of Southern California crews are despe
And europes weak again, dax down for a fourth consecutive day and empire, our first december number comes in soft, raising eyebrows, a fivemonth low. Movement on tax plans, were awaiting this morning to see the combined conference bill and Details Behind which cuts and deductions survived. Plus the latest on disney and fox, including the bid the murdochs said no to. A busy morning f stocks on track to erase thursdays losses. Yesterdays worries about a setback were sparked by senator rubio saying hes a no vote unless the Child Tax Credit is expanded they are trying to find ways to pay for maybe that additional deductions, its going to cost 200 billion, perhaps they let some individual breaks expire here early well see. Its very interesting that the market went down and dow went down 70 points on worries about rubio, maybe Something Else or other senators now there really is great uncertainty and the market is going back up. The uncertainty right now is higher than it was when the market
It the dollars losing its status as a World Reserve currency and so the population just burns all day trying to nickel and dime each other and the government well this is what you get as well when you have these sort of wealth and income gaps and opportunity gaps is that instead of everybody just having a National Health service or the French Health care system is really good an equal everybodys treated equal here its its its either you are like bled to death or youre given like World Class Health care for nothing for eighty seven dollars a month so those are the only two options so at a certain point and it made so much sense it was so obvious to see this coming is that this couple had eighty five thousand dollars in income and that meant she had to pay that was before taxes by the way so that meant they had to pay two thousand one hundred a month if she just lowered. Two under sixty five thousand or sixty two thousand that she just gets it for free so why go through all that stress o