Earlier this week I promised a short and sweet recap, but what followed was anything but short and sweet. Tonight's recap will be everything that other recap wasn't..... and less.
Today felt a heck of a lot like Tuesday and little bit like Wednesday,and nothing like Monday. Am I making any sense? Probably as much sense as a soaring stock and bond market, negative interest rates, record share buybacks, and the unbelievably low inflation rates around the globe. QE was supposed to stoke the inflation coals not put them out.
But.... yes... but... let's not forget about inflation. It can rear its ugly head quicker than a recently replaced FED chair can pen his/her own blog.
Before I begin with something that will likely contradict, yet again, with the title let me share the links of today's unusual option activity and stock scans. Enjoy them at your own leisure.
Ah yes, another dip, another rip, and all in all another slow grind higher. The theme of 2015, one that so many thought was gone, is the year of the individual stock. In spite of consolidations, pull backs, rallies, individual stocks have started to detach from the nipple of the mother and gone out to pave its own path in the capital markets. The breast milk of low interest rates has even found its way to the bakery, with Panera ($PNRA) utilizing said milk to fortify its stock price.
Many stocks are still suckling on the teat, not even able to crawl, let alone walk. These stocks will need to walk on their own or risk starving to death when the mother runs dry. But while the breast has shrunk here in the US, it is engorged in Europe. The milk in Europe has runneth over, creating historic interest rate action. Imagine a world where the banks pay the borrowers to borrow money. To use a slang term --- this is ass backwards...no? The central banks have taken the risk so far out of the system that the banks are paying the consumers to borrow.
Off the Soap Box
The market looks poised for more upside tomorrow. It is monthly OPEX a historically bullish day.
You know what this week's chart reminds me of?
My wonderful chart from last week continues to work.
$NFLX rocked it after reporting earnings after yesterdays close. The CALLS were off the chain.
It's been a wild couple of weeks. Last Friday we had $CMG soar for no other reason than it could.
I am looking for more grind tomorrow and continue to see the market hitting record highs in the short term. Tomorrow: Stocks will gyrate, we will have a few 5,000%+ option moves, Bonds and the US Dollar will rally, fall, rally, fall. A central banker will comment on something that we already know.
"A strong US Dollar is much stronger than a weak US Dollar"
"Rates will rise only after they are higher than they were previously"
On that(.... artificially low yielding Treasury.....) Note - I bid you good night.