May 12…)
“Things are going to get alot worse before they get worse.” Lily Tomlin
Today was a rare day of good-news and good-action in stocks. However, notwithstanding volatile prices on the tariff news, today’s session in NY was surprisingly dull. Gold opened down 3% and wandered in a narrow range. The dollar was up but motionless all day.
The stock market was sharply higher but there were no specific narratives other than an unexcpectedly swift tariff deal; just flows and the rest of the board. Drug stocks dumped hard and recovered as Trump made a good case for his EO being good for them. To with Pharma won’t lose revenue it will just besourced elsewhere, like Europe. PFE closed on the highs, and JNJ was well off its lows.
The stock market traded 90% of its range and its early best levels within a few milliseconds twice overnight: once at 6 PM Sunday evening and once at 2 AM Monday morning (noted on the chart). As the day developed, a well-formed up-wedge in hourly data finally resolved higher on the close.
In daily data, S&Ps closed on the high tick of the session, just piercing the 200 DMA. Volume was moderate. We’ll see what open interest does tomorrow, but it’s almost certain to be higher.
NDX was well above the 200 DMA this morning and extended its gains during the session. The Dow is still circa 500 points below its 200 DMA. For now, it’s a tech rally.
We’re coving gold, oil Treasuries and bitcoin next this evening as usual. The rest of the board was realatively NPC as usual. Here we go…
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