Happy New Year From the Markets

[Excerpted from Bill Cara's Daily Report]

All traders needed was to open their presents under the tree and Santa Claus would make everything all right, apparently. Since Xmas Eve, the S&P 500 has put in gains of +0.58%, +0.54%, +2.44%, +1.42% and yesterday’s +3.16%, with only the small loss of -0.39% on Monday.

On Friday, the North American equity markets were all strong: DJIA +258.30 +2.94% to 9034.69; S&P 500 +28.55 +3.16% to 931.80; NASDAQ Composite +55.18 +3.50% to 1632.21; Toronto Composite +246.41 +2.74% to 9234.11; and Venture Board +49.67 +6.23% to 846.69.

Earlier in the day, the European bourses were very strong as well: French CAC +4.09% to 3349.7; German DAX +3.39% to 4973.1; and UK FTSE +2.88% to 4561.8.

In Asia-Pacific equity markets, Tokyo and Shanghai remained closed but Hong Kong (+4.6% to 15042.8) was soaring, India was strong (+0.6%), and Australia dipped a bit (-0.1% to 3655.7).

In the forex market, (compared to pre-New Year’s close in brackets), the US Dollar was a tad stronger at 82.805 (82.15), while the Euro softened at 138.23 (139.21).

At the close of the week (compared to the prior week’s close), the spot prices for gold, palladium, platinum and silver were 874.98 (871.70), 187 (176), 938.5 (895.50), and 11.53 (10.53), respectively. On Friday, gold was the weakest precious metal due to the stronger $USD, but pall, plat and silver had plenty of strength, closing near highs for the week.

Crude Oil futures ($WTIC) gushed +$5.57/bbl on Wednesday and an additional +$1.74/bbl to close the week at 46.34. On Friday morning, crude had dipped to 41.77 at about 7:30am ET, so there was a strong run-up during the session.

DJIA futures closed the week at 8958, after being +43 at 7:40am ET to 8770. So, despite bad economic data during the day, trader psychology played a role as confidence moved up a gear.

Comments

[whidbey:]

Bill

I think you are right and will be for the next 60 or so days (maybe until tax if Obama cuts taxes).

Then the end for a year!! We need a short list next. I have made a little on your last buy list and I thank you for the picks. Please warn us a few days before the next major decline. A good year to you.

Jan 04 05:03 PM

[Anthony Alfidi:]

The markets are rallying on hope and the anticipation of a new regime. A lot of news is due out this week, so we'll see if this enthusiasm lasts until Friday.

Jan 05 01:33 AM