(As of 7:15 am pacific)
Yesterday’s market breakout to
the upside seemed to signal a shift in momentum. Market bulls seem to be in charge at this
point. As the earnings season winds
down, there have been some solid surprises on the plus side which have added to
gains. Oil is down slightly on reports
that the strategic petroleum reserve might be tapped. It feels as if the Obama administration is
learning from central banks that ‘talking into the market’ without action can
be almost as effective as the action itself.
I don’t expect the strategic reserve to be tapped because it would look
politically motivated, which it would be.
While yesterday’s gains added life to a boring August, I still think
that mundane market action will prevail.
The dollar is up slightly as are longer term interest rates and most
commodities up slightly. Consumer confidence numbers came in higher than
expected and leading economic indicators were up .4%. It appears we are headed for another positive
day.
