Despite a failed agreement at Doha, and increasing political turmoil in Brazil, the US market was never significantly spooked overnight. The Dow swung from lows of just -0.7%, to a Monday close of +106pts @ 18004. With the break above the Nov'2015 high, the door is wide open to new historic highs into the summer.
Suffice to add, new multi-month highs are unquestionably bullish, and ongoing price action offers nothing to the equity bears. Even a move to the lower daily bollinger (currently Dow 17395.. but soon to rise), will make for a lousy exit for most of those currently short.
Gold chatter - Mr Long with Mr Eliseo
Starts a bit slow, but for those with an interest in the precious metals, its worth sticking with.
Tuesday will see housing starts.
It is.. what it is.
I realise some will roll their eyes at the notion of new historic highs, whether within a few weeks, or later this summer. But hell... even the most bearish participant in this twisted casino should be able to acknowledge the bizarrely bullish reaction of the US market today.
I suppose you could argue the bears still have a chance until actual new highs are broken, but to me... with the Dow breaking back into the 18000s.... it is almost certainly over.
... and I guess that ranks as capitulation.
Goodnight from London