Home Depot [HD] posts nice numbers, oil, gold back to their losing ways, and new Square [SQ] IPO looms later this week. Boredom reigns supreme in light trading.
WASHINGTON, November 17, 2015 – Boring trading is dominating Tuesday’s jaded markets. Home Depot’s (symbol: HD) numbers jazzed traders at the opening bell, although the halo effect is diminishing as we write this around 2 p.m. EST. The Dow is up approximately 83 points with other averages showing similar approximately 0.5 percent gains. But markets don’t seem much inclined to rally big again today, meaning that much of Monday’s irrationally exuberant trading was probably another oversold bounce/short squeeze.
Balancing out vestiges of optimism today is the simple fact that commodities—particularly oil and gold—are taking it in the ear again today after briefly rallying on Middle East fears prompted by those brave Islamofascists who slaughtered scores of innocent Parisian citizens last Friday.
With bombs now raining down on ISIS (instead of NATO boots on the ground which would really get the job done), markets seem to be defaulting to complacency. Momentary fears of oil shortages and the usual “political instability” bid gold gets in times like these, seem to have vanished in less than a fortnight. Gold is taking a bigger beating than oil right now, but that could change at any time.
Essentially, what we have here is a seriously meandering market. Directionless, lacking conviction, markets continue to wring their hands over the usual topic—interest rates and what the Fed will do with them—and the overall Carter-like malaise that’s overcoming markets which, at long last, realize they haven’t had a President on their side for approaching 8 years, a situation that won’t change anytime soon.
For this reason, we’ll take an afternoon snooze after we sign off here, rather than continuing to wrestle with the nonsense and treachery of thinly traded markets.
Stock-wise, we have put in for shares of “Square,” (proposed symbol: SQ), the company that sells those little square thingies you hook onto an equipped iPhone or other such device, enabling it to swipe customer credit cards at point of sale locations.
We’re not sure if this IPO will be a winner in the current highly suspicious trading environment. Plus, you have to figure that these little guys are actually up against monster players like Apple (AAPL) in this competitive space, which makes you wonder if they’re going to be viable, say, beyond the semi-mandatory 30-day holding period our broker “encourages” us to hold new IPO shares.
As usual, we’ll see how the issue prices before we actually make our final decision. Pricing will occur sometime after COB, November 18, 2015. Coincidentally, that’s when dominoes start falling for the CSC corporate split/big dividend bonanza that will come to full fruition later this month. (See our lengthy explanation as to how this will work in our companion column.)
Anyhow, we’ll let you know what our final decision is/was in Thursday’s column. If you’re excited about this issue, you’ll need to contact your broker. As with us, you might find in the end that you don’t get any shares because the rich dudes got to buy them all first. Then again, if the IPO tanks, you might be glad you were shunned anyway.
That’s about it for today. Nothing much happening means nothing much to write.Click here for reuse options!
Copyright 2015 Communities Digital News
This article is the copyrighted property of the writer and Communities Digital News, LLC. Written permission must be obtained before reprint in online or print media. REPRINTING CONTENT WITHOUT PERMISSION AND/OR PAYMENT IS THEFT AND PUNISHABLE BY LAW.
Correspondingly, Communities Digital News, LLC uses its best efforts to operate in accordance with the Fair Use Doctrine under US Copyright Law and always tries to provide proper attribution. If you have reason to believe that any written material or image has been innocently infringed, please bring it to the immediate attention of CDN via the e-mail address or phone number listed on the Contact page so that it can be resolved expeditiously.