It remains to be seen if the ECB move to lower the deposit rate to -0.10, but either way, we don’t care, we only concern ourselves with how the markets react to the news.
As a result, the stock market floated higher today on better volume than the last few weeks, but light volume nonetheless.
The interest rate, bond market and gold were all affected by the early announcement before the market opened.
Rates went both ways, spiking higher, then finishing the day slightly lower. Gold rose on the day, but still remains in no mans land.
Oil was mainly flat on the day, but has upside potential which is discussed on today’s video review.
All in all, it was another grind higher which can continue for several more weeks. While I would expect a slight pull back of the major averages before the big top, you must recognize the market is in an uptrend.
We always wait for the market to tell us what to do, therefore we wait for the signals before taking any trades.