Market Alert - The Close

It's magic. Take a dead economy in a depression working on its second decade, reelect a money printing prime minister, add a money printing US central banker, then add $100B more money printing stimulus to your economy. The result: a 4% stock rally plus stocks rallying around the world.

Doesn't hurt that the UK saw its 'Brexit' PM candidate drop out. The pound surged as did European stocks.

That was all on top of the US Jobs Report Friday that saw jobs leap from 11K to 287K even as more people reported becoming unemployed versus employed. Yes stock markets, employers are not investing in their businesses, but they are hiring . . . ? Doesn't matter. We were told that the jobs report is important and the BLS delivered one that clubbed expectations. Must rally.

Mix all of that together and you get a new SP500 all-time high and DJ30 pushing close behind. Magic.

Of course in a world where the US has almost $20T current debt (and $100T with all the claims out there) and it is hardly alone, printing more money to push paper assets higher even as corporations refuse to invest in anything capital other than buybacks, this all makes sense. Ours of course is not to question why. Ours is just to buy, buy, buy. Again, that is what we are told.

SP500 7.26, 0.34%
NASDAQ 31.88, 0.64%
DJ30 80.19, 0.44%
SP400 0.57%
RUTX 1.08%
SOX 1.12%

VOLUME: NYSE -10%, NASDAQ -14%, both well below average. Not exactly a blast off upside, but then again, stocks have come a long way off the Brexit lows.

A/D: NYSE 2.2:1; NASDAQ 2.1:1. Not huge but solid enough.

More to the point, good stocks with good patterns are making good moves. Leadership has improved substantially with more areas participating. Do you get upset and rail at the conditions leading to this? You can and that is fine, just don't let it interfere with actually participating in the move. Good patterns saying 'buy me.' As I said over the weekend, we are not going to over-think it.

We bought some CENX, CRM and UNP positions, and more are still in good position. We will see if they can make the moves as well.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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