Whoever designed the packaging for this toy, appropriate for ages 5 and up, has my total admiration. The creator of slogans like “Blow ‘Em! Catch ‘Em! Eat ‘Em! along with “Squeeze Me! My Tongue Pops Out,†or “Candylicious Bubbles, Bubbles You Can Eat,†I’m willing to bet has no idea he/she is today’s market commentary inspiration.
Heck, we might as well add “Safety Tested, Kid Approved†to the mix. After all, each time any number of possible bubbles might burst in the market, the market “squeezes†out a new one.
Today’s almost bubble? Several actually. The Dow Jones Industrial Average (DIA) trading on a new week low. The Transportation sector falling to a 3-week low after Ford’s dismal performance and earnings. Semiconductors almost forming a reversal pattern after making new highs. Oil continuing its precipitous drop.
But, like my Naturally and Artificially Grape flavored friend pictured above claims, the market’s tongue popped out and all those potential bubbles were safely ingested.
The end of the week the end of the mouth-will the market continue to sing, “I’m forever blowing bubbles?â€
With a clutch turnaround, Biotechnology (IBB), our speculative sector, which early on looked like it would fail the 200 DMA, came roaring back.
The Financial Sectors, Big and Regional Banks, closed relatively strong. Transportation and the Dow wound up basically unchanged. Semiconductors took some deep breaths and hung in there. Oil, well, best we can say is that the extremely oversold condition makes it look ready for a bounce.
And speaking of bubbles, in Treasury Bond toyland, yields are flattening, rates rose marginally. Gold and Silver declined slightly while holding on to key short-term support levels.
What can we expect tomorrow, the last day of both the week and month?
As I wrote above, a relief rally in oil for starters. With an inside day in the Russells, a new 2016 high close. The U.S. Dollar to close above 25.05. The rates to firm more. (Yet, not a phase change kind of move.)
