Today was largely an uneventful day as volume was well below average and well under Friday's level. Sellers continue to be on vacation as buyers were able to lift the market into the close. AAPL was the talk of CNBC, but the stock remains in no man's land despite the potential for the company to return cash to its shareholders. The Yen continued its decline as the Bank of Japan is hell bent on destroying its currency. In commodity land crude oil jumped back to 97 and appears the commodity is headed above par. It remains to be seen if these high crude prices will hurt the economy. We remain in our uptrend and at this point we don't see enough evidence it will end any time soon.
Tomorrow we'll get the President's view of the state of the union where we'll l likely hear about new spending measures. FSLR and SCTY moved and while we have high crude oil prices the President will likely renew his call to invest in solar. We simply see two stocks moving and at the moment it appears the industry is improving. Free government money is nice and when you couple it with higher crude prices solar certainly looks like a hot industry.
Europe continues to have issues and the DAX closed below its 50 day moving average again. The EURO has gained quite a bit because at the surface the ECB is not set out to destroy it. Our short-term trend model has been long FXE for quite some time. How long will it last? It is anyone's guess, but for now the currency is in an uptrend. The Yen continues its decline and the dollar remains stuck in the middle. Currency markets have a funny way of making headlines and for now FXY and FXY remain in solid trends.
Bulls are looking for a correction to buy and bears are looking for a correction to sell. Sentiment continues to be bullish, but either camp has yet to win. Remember to have a game plan in place!
UNGDOWNTREND NO CHANGE2/11/201318.450.49%
GLDDOWNTREND NO CHANGE2/11/2013159.70-1.16%
FXYDOWNTREND NO CHANGE2/11/2013104.42-1.20%
TLTDOWNTREND NO CHANGE2/11/2013117.12-0.08%
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.