- US Dollar goes sideways for 5 weeks
- Oil hovers near the 50 DMA
- Natural Gas holds $2.60
- Gold pulls back
- Three stocks make up 50% of the S&P 500 bounce
- Video link inside
The big news on the US Dollar continues to be no news. Rather than breaking support and plummeting, the US Dollar continues to trade sideways for 6 weeks after breaking support. The phrase 'hurry up and wait' comes to mind. With a Friday trading day left, watch to see if the dollar can make a higher high. Today's chart has not updated at time of publishing, but it was another small move as part of an inside week.
West Texas got a boost today and moved back above the 50-day moving average. While that is good, the stocks fail to follow any hint from oil. The XOP ETF is almost 10% below the 50 DMA.
I appeared on the MarketWatchers Live show this week with Tom Bowley and Erin Heim. It was a quick show as the time just flies. I spent a little too long covering off my segment, but I discussed how line charts can produce different highs on different time frames. I also covered this in the Stock Charts For Dummies book, which is available wherever books are sold.
On my Twitter feed today, Stephanie Link of CNBC's Half Time Fast Money Show pointed out that three stocks are responsible for 50% of the S&P 500's bounce. Amazon, Microsoft and Netflix are doing the heavy lifting. Technology stocks are doing 75 % of the lifting so there are a lot of sectors failing to bounce so far. At this point, watch price action and try not to overtrade.
Lastly, here is the video link for this week's Commodities Countdown.
Greg Schnell, CMT, MFTA