Weak guidance by major technology bellweather Cisco (CSCO) did little to slow down this market. Janet Yellen testimony to the Senate Banking committee went as expected... meaning dovish as can be, and quantitative easing in our lives for a long time to come. The S&P 500 gained 0.48% and the NASDAQ 0.18% despite the weakness in the technology sector. The Russell 2000 was down 0.07% which was a tiny fly in the ointment. "It's important not to remove support, especially when the recovery is fragile and tools available to monetary policy, should the economy falter, are limited given that short-term interest rates are at zero," Yellen said.
Stocks had mild gains in a very quiet session Monday, following 2 days of wicked volatility late last week. Volume was low as this was Veteran's Day and the bond market was closed. The S&P 500 gained 0.07% and the NASDAQ 0.14%. News flow will generally be light this year but some focus will be on Janet Yellen's confirmation hearings in the Senate - although it can be assumed after the normal political song and dance she will be approved for the post.
The steady beat of this market continues to the upside. We barely are getting chances to work off extreme overbought conditions before buyers step in for a new round. Yesterday was only the second down day of this near vertical rally and buyers came right back in today. News flow continues to be light, and focused on individual earning reports. For the day the S&P 500 gained 0.33% and the NASDAQ 0.56%. There was an interesting report today on how investors are piling into margin as the market continues to elevate - we saw this happen in 2007 and of course 1999 to the extreme. It can go on for a long time of course but this is usually a longer term bearish signal.
Stocks continue to churn in a range as they are working off the big move from late June. It has now been nearly two weeks that the indexes have sat in this range, and the short term overbought condition seen last week is gone. It was a very choppy session but in the end the bulls won out with the S&P 500 up 0.26% and the NASDAQ 0.71%. Economic data continues to remain light this week:
Quick Reminder from Blain: Yesterday I posted the Q2 2013 Reader Satisfaction Survey. If you have not taken it yet, please do, we want to hear from you, thanks!
A speech and Q&A session with Fed head Ben Bernanke yesterday after the market close helped push stocks into overdrive Thursday as the markets gapped up strongly and never looked back. A late day surge pushed stocks into their highs of the session. The S&P 500 gained 1.36% and NASDAQ 1.63%. Unfortunately everything continues to be about central banks rather than much about fundamentals. The chairman of the Fed said the economy needs easy-money policy "for the foreseeable future." Further, the unemployment rate may be understating the issues in the labor market. This is because there have been so many dropouts from the labor market the unemployment rate is about 2% lower than it would normally be. So it is the same old, same old folks - as long as the punch bowl dealer remains ready to hand out punch in excessive loads, the stock market is happy. When his supply is even rumored to be cut off - well you saw what happened from late May to late June.