Monday markets: Stocks back and fill, digesting recent rally

Friday job stats make it likely Fed will hold interest rates steady. For now. Gold pops again, financials take a rest, oils weaken.

More backing and filling action in stocks and bonds. (Public domain image via Pixabay, CC 0.0)

WASHINGTON, February 6, 2017 – After an up-and-down, mostly positive but wildly unpredictable bout of trading last week, stocks and market averages alike opened mixed Monday morning and more or less remained that way as we passed the noon hour.

As of 1:45 ET, the Dow, the S&P 500 and the NASDAQ are all off between 0.25 and 0.4 percent with the tech-heavy NASDAQ the strongest of the three by a slim margin, likely fueled by Apple (symbol: AAPL), which has been on a tear since last week. It’s up another $1.06 per share as we write this, standing at $130 per share, a price that some analysts are predicting to rise another $10-20 dollars per share some time in 2017.

Traders and investors are still trying to figure out what the Federal Reserve’s next move will be on interest rates, even as confusion reigns over President Trump’s stalled 90-day selective immigration suspension which is being challenged in the courts and via lawsuits from the usual Silicon Valley miscreants who still want to hire boatloads of cheaply-bought H1B visa holders while firing more expensive American workers.

It’s clear that once again, plenty of Soros money is behind the continuing disruption occurring around the country—erroneously billed as “protests”—and is also behind the current court action and lawsuits in a big way. The Soros game is to destroy any vestige of nationalism, particularly in the U.S., the better to clear the world for “globalism,” which is nothing more than a kind of New Feudalism bearing signs of a Marxist ancestry.

Read also: Trading diary: Gold, silver, copper back on the plate

Between the Fed and the anti-Trump fake revolution, markets tend to bide their time rather than reflect major investor commitments, something duly noted by respected economist and onetime PIMCO guru Mohamed El-Erian, who opined on Friday’s Federal wage and job reports this morning on CNBC:

“On interest rates, the internals of the government’s better-than-expected January employment report on Friday ‘delays the Fed hikes,’ El-Erian said on “Squawk Box” on Monday. ‘So the probability of them moving in March goes down.’

“He cited in his argument disappointing wage growth and a pickup in the labor force participation rate, which suggests there are still gains to be made putting people back to work.

“The market seems to agree, with the CME FedWatch Tool showing just an 8.9 percent chance of a Federal Reserve rate increase at its March meeting, with the probability going up as the year progresses.”

Barring any additional news and fake news craziness Monday, markets are likely to fizzle today, moving sideways once again both to digest last week’s record action as well as gauge just what four years of a genuinely populist president, unpredictable in many ways, will mean for stocks.

Aside from various housekeeping moves, we plan to just sit back and watch today, although we regret we didn’t put more money into our gold ETF last week. Gold is booming again today, which was once a predictable move when uncertainty clouded the horizon in both the business and political environments. That’s surely true today. Until the coast looks relatively clear, gold investors are likely to be happy investors most of the time.

Stay tuned.

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