Another Tuesday Trading Session in the books. While the media likes to give an exact reason why the S&P500 and DJIA hit record highs, I'm pretty sure stocks were going to head higher even if Yellen did not speak today.
Courtesy of CNBC.com:
Home Depot blasted to new lifetime highs today after reporting earnings that impressed investors. They also announced an $18 billion share repurchase program.
Home Depots buyback program is almost $50,000 per employee. Add to that another almost $2.4 billion in dividends to be paid out in 2015. Share buybacks offer a tremendous opportunity for publicly traded companies to increase the price of their stock. The higher the price of Home Depot stock, the more money officers and directors get when they cash in their options.
$AAPL in 2014 bought back enough stock to give each of its employees $1 million. It's all about the buybacks stupid.
Since 2012 Home Depot has seen its sales increase almost 20%, over that same time the stock has rallied more than 300%.
On the flip side, share supply continues to shrink.
Banks came back strong today. $JPM, $GS were among the big movers today.
Some of the $JPM weekly options were up several hundred percent. A boring Dow Jones Industrial Average component can turn exciting with the flip of a switch, a press of the button, or the initiation of a buy program.... however you want to put it.
The goldbugs were all butt smacking each other last night when word of an investigation into Big Bank manipulation was underway. Gold ended the day only slightly lower on excessive **cough*** Cough*** manipulation....right?
After all these years of banks keeping gold down... they will now be forced to cover all their illegal shorts.....
The VIX is back in dump mode, down another 6% today. It looks poised to hit that 12 figure support. From there we could be looking at that low from last summer. That should spark the "Why is the VIX so low" talk that littered twitter an the financial networks for several weeks.
If you think Gold is manipulated, you might as well head on over to the VIX as well.
Individual names continue to work in this market. While we have $SPY, $QQQ, and $IWM breaking out of consolidation to the upside, the velocity of their move higher is not enough to be trading short time duration calls on those ETF's. Last Weeks earnings trades worked out rather nicely. $PCLN and $GRMN, and this week earnings are still coming in.
Here is one earnings trade I made today.
Bonds continued to rally today with the 20 year ETF $TLT rallying over 1.6%.
and finally I love this US Dollar chart. I think we are still in the middle innings of this move higher, and the index will see triple digits in the coming months. The stronger US dollar will be something the media will be talking about heading into the summer.
Tomorrow should be more of the same, meaning a dip in the morning, followed by some slow, methodical buying that will get the market back to flat and more than likely another record close.
See you in the chat room bright and early.