FBI Finally Cuts Ties With Leftist Hate Groups
Of Course the Democrats are Lying About Funding Illegals
CNN's Kaitlan Collins Is Infuriated That No One Cares About Trump Blasting Dems...
Trump Just Issued a Final Warning to Hamas
Antifa Assaulted Conservative Journalists – Guess Who the Police Arrested
Democrats Thought They Had the Upper Hand in the Schumer Shutdown. WaPo Says...
It's Time to Ask Why Portland Police Are So Soft on Antifa
Sen. Bernie Moreno Introduces Legislation to Tax Congress During Shutdowns
The Atlantic Comparing Floyd to Kirk Is Insulting and Intellectually Dishonest
Qatar Is Bankrolling Global Terror—and It’s a Direct Threat to the West
The Democrats Won’t Shut Down the Government for Long
Maryland Educator Caught Assaulting Conservative Activist on Camera in Washington DC
Another Blue City Just Got Some Bad News From OMB Director Vought
Of Course This Happened Just Moments After ‘1984’ Starmer Beach Art Appeared
This 2019 Clip of Democrats Is Coming Back to Haunt Them Amid Shutdown...
OPINION

Looking To Break Trends

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

Well, Christmas has come and gone, and I hope it was joyous for everyone. However, for investors, it was yet another year where the so-called Santa Claus rally never materialized. More importantly for investors, major indices continue to fail at pivotal moments. It’s the subtle stuff, but after an extended period, the inability to breakout leads to a big pullback.

Advertisement

The Dow has quietly made a series of lower highs and lows, which could morph into something more worrisome.

While equities search for stock-specific news and developments in order to give it a spark, there’s also a hurdle that can only be cleared with macro evidence. The domestic and global economies are gaining upward momentum.

The best evidence is a bounce in commodities, especially in crude oil. There are other factors for bounces such as the levels of inventory and direction of the U.S. dollar. In fact, commodities are at such low levels; even ten-percent moves prove nothing with respect to a narrative beyond trading.

For this reason, the big bounce in crude last week was only a big bounce in a commodity that was north of $100 in 2014. This year has seen major rebounds in crude that fizzled, resulting in sharper declines (See March and September). Crude could rally to $45 and not break the downtrend.

Advertisement

Volume will be lighter than usual all week long, and the absence of tier one news of earnings reports means that the market will be left to its own devices. This is actually a good time to check the gut of investors. Are they willing to buy without clear impetus?

The answer is yes; however, trends must be broken and reversed.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement