Karpel’s Corner: Wasabi is going on in the market? S&P Pops, Gold Drops

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The S&P 500 ($SPX) hit a new high and partnered with their big brother, the Dow Jones ($DJX), confirming the bull is alive and well.

If you buy into the Dow Theory, when you see that Dow Transports ($IYT) and Utilities ($XLU) are leading, the Dow Industrial ($DJX) will gravitate to the upside. This is now evident in the market as the QE is served up Sushi style – with a huge side of Wasabi (a poor reference to the new monetary policy of Japan).

This puts three Dow indices at all time new highs. The S&Ps were also helped by the three most economically sensitive sectors, Semiconductors ($XSD), Financials ($XLF), and Biotech ($IBB). All three now leading to the upside.

Gold ($GLD) and the Miners ($GDX) are getting pounded to the downside. Action in the shiny metal will continue to be weak with continued strength in stocks and the US Dollar ($UUP).

See you next time at the Corner!