Another Record Dow

With very little time this evening, we thought we’d just recap some highlights. First, the October PPI seemed a bit odd with a drop of 1.6% with expectations running for only a 0.6% drop. The “core” PPI fell also, down 0.9% with expectations for a rise of 0.1%. The reason cited was the drop in the price of energy. Thank you very much. When prices of energy were going up, it didn’t seem to be reflected in the PPI but now that it’s going down, it is. Where are the referees???

Energy was cited as the reason for the drop in retail sales, too. With all of this Deflation going on how did the markets do? Well, the bond market did like it and traded to a new intermediate high but it wasn’t really too convincing. The stock market thought it was ok early but fell such that mid-morning, the Dow was down about 45 points. From there, it was up and away.

In the afternoon, one of the hawkish Fed members, Poole, stated that the housing market seemed to have further to go on the downside. This was taken to mean He was no longer hawkish on interest rates and neither was the Fed. From there the stocks jumped and the Dow closed up about 85 points.

Well, what can we say? All four of our indexes traded to new highs for at least a year or more on Tuesday. This would indicate that there are very few sellers around. We will provide more information in our next post.

Dow Industrials: 12,218.01 +86.13
VIX: 10.50
QQQQ: 43.93
RYVNX: 17.06
RYAIX: 21.52
RYCWX: 36.58
TLT: 90.19
BEGBX: 13.88