Friday, 18 March 2016

10am update - opening gains

US equity indexes open moderately higher, with a new cycle high of sp'2049. VIX is naturally subdued, -2% in the low 14s. With the USD fractionally higher, the metals a touch weak, Gold -$3, with Silver -0.1%. WTIC Oil is holding sig' gains of around 2%, with the May contract in the $42s.




*consumer sentiment: **

It is notable that the R2K has hit the 1100 threshold.

So.. yet another new cycle high, as unquestionably, Oil is helping push the market higher. As many recognise though, the higher oil goes, the less likely supplies will be cut... and indeed, likely to be brought back online.

Equity bears look out of the picture until Oil stops rising, and it does now seem WTIC will at least reach the $44/45s next week.

notable strength: BA, daily

A mere $1 away from the 200dma.. having soared from the Feb' low of $102. That is a pretty insane ramp for such a giant industrial.

stay tuned