Punch Out or Whiplash ?
This morning the markets are set to try and punch out through the highs of January 4th. Whether or not they succeed in holding above those highs will determine where the markets are going over the next couple of months. Going into today the readings on all the asset markets we follow are mostly mixed, 21 of them, with one market in full sell mode, natural gas, and five in full buy mode, cattle, feeder cattle, hogs, Nasdaq 100 ETF QQQQ, and AG Commodity ETF DBA. Of the non-asset markets, the dollar and interest rates, most are in full buy mode. This aspect however, does not square with assets punching out the top and holding. In any case it should be an interesting day.