Soon but maybe not yet this is a new leg of the higher market courtesy of the Fed this may last for a day or two more but the market is now levitating higher on the weak dollar not earnings....for now Fundamentals do not matter but they might in May.
Oil is rising due to the Fed smacking the dollar other Central Bankers will start to address this soon it cannot go on forever. Oil inventories were up today along with gas along with Cushing levels which pushed oil lower before noon and after 2pm oil took off. Enjoy the last leg of this market rally May is nearby and earnings are not justifying this move in markets. At some point fundamentals will matter but not this moment. If you have nice gains I would start to take some soon I am.
But this is Fed (and some Cramer) induced and possibly short lived. All you have to do is look at what happened with oil today it was down after an inventory build and gradually rose into the announcement and rallied 3% after on no fundamentals just the Fed. Party on with the Fed.
That's why the weakness today? I figured Wall Street ran it up into earnings and then bail like they are famous for doing.
It's all about the Fed and oil possibly that changes in May. We have had earnings reports day after day of big names that are missing lowered estimates. Markets will not go down they are waiting to hear Yellen say status quo but tonight I have a feeling she may hint at a hike in June if so sell in May will arrive. Oil inventories today finally slowed down the straight up oil trade for now.
Check out BHI's numbers this morning. That's the problem are earnings going to be there. BHI's numbers were horrible. This is such a scary time in markets because all that matters is the Fed.
Ignore Cramer for now Yellen will dictate where stocks go because earnings are not a factor now.
If she hints at a June hike the dollar strengthens and Daghi and other heads are not going to sit back and let her keep dropping the dollar. That's "if" but at some point they have to raise oil is exploding and she cannot call it "transitory" any more. The economy will slow even more as gas prices continue higher weekly. Markets are climbing to near all time highs again based purely on Fed policy not earnings and at some point something has to give. Cramer can only tell people to buy near highs for only a bit longer. When the next correction comes and it could be May it will be a pretty good one.
You have the Fed today which may guide a lot of things including the dollar. Cramer will give shares a bump today but May is around the corner and I believe more than ever this market is set up for a sell in May based on the market run and the sloppy and lackluster earnings we have seen. I guess we'll see soon.
You will need at least $65+ oil to get there by then the economy will be in recession and oil producers will have ramped up production around the globe. This stock is already ahead of itself and much of this is short covering. April 18th CLR was under $32 now it's over $39. Two months ago it was under $20. At some point the Fed has to see where oil and gas have gone and will have to put the breaks on some of this.
This stock was a $53+ stock at it's 52 week high when oil was much higher. This has to be about a short squeeze and not much else. The share price does not make sense in relation to higher oil prices over the past year. Oil is now up over 3.5%....I guess we should see a draw down tonight and tomorrow.
Let's play....How long can the Fed allow oil to run higher with a weak dollar that will be part of the game in the Fed's announcement tomorrow. For now party on with the Fed.
GRPN is now up near a buck from about a month ago that's big. The stock is grinding higher into earnings it seems with the speculative idea helping. At this point they need to deliver pretty good numbers. What's funny about this market is we had poor Durable Goods numbers this morning but the market almost always rallies into a Fed announcement....tomorrow. I'm am getting concerned that after pension money comes in on the 1st we then see the sell in May happen. Based on earnings and the GDP numbers coming there is no reason for markets to be this high but we will go on the back of the Fed. The Fed wants inflation they have oil going up along with gas prices which cannot be good for the consumer and we celebrate higher energy prices. For now party on with the Fed.