The Key Level In The Most Important Market In The World, Plus A Q&A About The Gold Market
As we kickoff trading in 2017, here is the key level in the most important market in the world, plus a Q&A about the gold market.
By Bill Fleckenstein President Of Fleckenstein Capital
January 10 (King World News) – Overnight financial markets were flat to slightly weaker, but that had no bearing on anything. The indices here limped around unchanged through midday in trading that, as noted in yesterday’s headline, has become rather dull. That may indicate that the euphoria is slowly waning and exhaustion may be setting in. I only throw that out there as a possibility. Unfortunately, I have no strong reason to say that is in fact the case (yet)…
Once again the afternoon saw a little upside pressure for the Nasdaq, which gained 0.3% as of an hour to go, when I had to leave (the Dow/S&P were flat). Away from stocks, green paper and bonds were weaker, oil lost 2%, and the metals were higher, led by silver, which gained 1.5% to gold’s 0.5%.
In the news this morning I saw something I wanted to comment on, namely that small business optimism saw a jump that was only rivalled by the leap that took place in the wake of Ronald Reagan’s victory over the incredibly inept Jimmy Carter. Back then the confidence index rose from 80 to 96, and today it was announced that it jumped from 95 to 105.
Obviously, the absolute level is much higher now, but what is interesting about this data series — which I hadn’t really followed before — is that it has only been higher than this a couple of times since the 1980s, with the most recent peak of 107 in 2004 only two points higher than today’s reading.