And the Santa Claus rally continues.....mkts rallied to NEW highs as investors/traders celebrate the 'patience' of the FED. You have to wonder - Will the FED ever normalize rates?

Despite the move to new highs - volumes remained subdued....of particular interest is the fact that oil fell $1.87, - The Saudi's oil minister - Ali al-Naimi - continued to talk it down - saying that it is NOT in the interest of OPEC to cut oil production - no matter how far prices fall......

"Whether it goes down to $20, $40, $50, $60, it is irrelevant"

he went onto say that the Saudi's were prepared to increase output and GAIN mkt share as lower crude oil prices are a net positive for the global economy and lower prices will increase demand...

Energy stocks took it on the chin - even in the face of that Barron's cover piece - highlighting the opportunities being created in the sector - yet the broader mkt ignored weaker oil and marched to new highs....Very different from three weeks ago when weaker oil was blamed for the mkt sell off......

It is important for the FED and the administration to keep stocks in positive territory - it just feels good....and as we have seen - it does not take much to create the nervousness.

The National Association of Realtors reported that existing home sales tumbled 6.1% to a seasonally adjusted annual rate of 4.93 million in November. Economists had expected existing home sales to edge down to 5.20 mil. And mkt breadth? Not so good.....Even as stocks move ahead to new highs - breadth remains a bit weak... This suggests that broad based support is not as strong as what the mkt is telling you..... this powerful week long advance is all about the 'intervention' and not about the fundamental economic data.

Eco data - This morning will be busy in terms of the headlines - between 8:30 and 10 am we will get a number of broad macro data points..... final revision to 3rd qtr GDP - expectations are for an increase to 4.3% - with some estimates as high as 4.7%, Durable Goods, Cap Goods, Personal Consumption and Univ of Mich Conf Survey round out the day's macro data and essentially closes the books on the year. Watch the bond mkt after the data....

If the data is good - then bonds should decline - reflecting those same improving fundamentals - but again - we are at year end - unless the data is such an outlier - there may not be a reaction one way or the other - as so many have put off any new decisions until the new year.

Volumes to remain low - for the balance of this week - next week - will see some last minute yearend tax loss selling as the final bell rings.
US futures are teasing higher once again....currently +2.8 pts at 2075. I will look for the mkt to continue to churn - no reason at the moment for the mkt to sell off - I mean if it didn't sell off yesterday on the Saudi comments then sit back and put on the party hat.

Overnight - China was in focus as iron ore prices weakened again...raising new concerns about growth. China fell by 3% and Australia fell by 1.1%.

In Europe - mkts there are all in positive territory - Keep your eyes on Greece and Ukraine. The Greek Parliament again failed to elect a President, ( PM Samaras’s candidate getting just 168 votes). The focus is now on the final election on the 29th - Samara's needs 180 votes. This was not unexpected. Second, Ukraine officially dropped its “non-aligned” status suggesting a shift towards Europe. This move will only serve to make Vladimir nuts...surely escalating tensions.

I am out tomorrow and back on Friday - depending on the action - my note will be sporadic over the next week. Have a great holiday season - enjoy the moment and the precious time with family and friends.


Christmas Morning Banana Bread French Toast

This is that great recipe that is more like a dessert than breakfast - but trust me - it is a great breakfast. I got this recipe 28 years ago from a dear friend - it never disappoints

For this you need:
Banana bread, Haagan daz vanilla ice cream, eggs, warm maple syrup, butter and some powered sugar(optional).

Beat the eggs - add in the melted vanilla ice cream - mix well. Now cut thick slices of the banana bread and soak in the egg/ice cream mix.

On the stove - heat up a non stick frying pan and melt the butter - keep heat on med do not burn the butter. Add the slices of banana bread and cook. Flip it over and repeat - place on a warmed plate and drizzle with the warm maple syrup. (shake some powered sugar on top if you like).


Buon Appetito.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures