Kind of a slow summer Monday morning. There wasn't any big M&A news to report from the weekend, and there isn't much in the way of corporate news in general. The biggest thing going on are all of these ice bucket challenges for ALS. But nice to see them raising money for a good cause. Check out ESPN's story on Pete Frate's to learn more about how it started.
In economic news, the NAHB Housing Market Index for August rose to 55 from 53. Housing hasn't provided much of a boost to the economy in recent months, but hopefully it can get going again.
Asian markets were mostly higher overnight. In China, home prices fell for a 3rd straight month, even though they were higher on a year/year basis. European markets are also higher today after foreign ministers met over the weekend to discuss a potential ceasefire between Russia and Ukraine (no agreement reached yet).
The 10-year yield is getting a bounce from Friday's low levels, and is trading near 2.37%. The volatility index is down another 5% to 12.50. And gold prices broke below the $1300 level this morning and are now sitting right at that key psychological level.
Trading comment: The S&P 500 and the mid-cap index are both breaking back above their respective 50-day averages this morning, while the Nasdaq is making new highs. Unless there is a major negative reversal later today this will be a pretty good sign that bulls are back in charge and the market could be looking at new highs in the near-term. We admit we again felt like the markets would get a deeper correction, maybe a 5-7% pullback, but that does not seem to be in the cards at the moment. One day we will get another 10% correction, but that doesn't mean it won't be from higher levels first. We would be looking to add to stocks making new highs now as they should lead for awhile.