Percolating Hotrods, bouncing Lowriders, euphoric Crows, patient Dogs-all bits from last week’s Daily titles.
Cars, crows and dogs converged on Friday to trip the light fantastic as the Dow, S&P 500 and the Transportation Sector made new all-time highs.
DIA, SPY and IYT danced to every song the band played.
A Santa Fe phenomenon that never ceases to amuse me is that no matter where, when or how, if folks hear one lick of live music, they stop whatever they were doing to dance.
That seductive “So you think you can dance” sentiment I’ve observed here, we now see in the market.
Mind you, some market attendees danced to only a few songs.
Others remained virtual wallflowers.
Overall though, while the French celebrated Bastille Day, a time when a thousand folks stormed the prison to release inmates, investors stormed the market’s consolidation prison and released new buyers.
After wondering, “When will this protracted consolidation period have its day, will July 14th commemorate the official start of the 5th Stage of Disbelief?
Have the Bears finally thrown in the towel to buy?
Some, but not all.
Weak economic indicators such as an unexpected drop in retail sales (haven’t they seen Granny Retail?), unchanged consumer prices and softer revenues for big banks (smallest violin playing), dissuaded some from buying.
Some, but not all.
Buyers came out to buy not only the DIA, SPY and IYT, but also the Russell 2000, Semiconductors and Nasdaq.
Those listening to the Biotechnology band play, only danced to a few songs. IBB closed down slightly.
Regional Banks, after the soft revs in big banks, played to a bunch of wallflowers. KRE lost .63%.
Granny Retail (XRT) tried hard to resuscitate. By the end of the week, a move over the key 40.00 level eluded her.
Monday could go either way. As much as we would like to declare July 14th Bears Become Bulls Day, it could also go the way of the guillotine.
