US auto sales come in soft, the market retreats from yesterday’s run up, and the rest of the story is filled with bits and pieces of solid fundamental evidence that Europe is healing and almost half the big-cheese leaders of American corporations plan on spending some money this year. Did I get the gist of the news? Oh, yeh, and oil is still struggling with record inventories.
- Oil rebounded on Tuesday from the previous session’s tumble, lifted by fighting that threatened Libya’s oilfields, although U.S. crude struggled to hold to gains due to record crude inventories.
Somebody asked me this morning about making a bet on crude oil now, as that trader believes that oil has found a bottom. She wanted to know what I thought. My simple answer was “No, I did not believe oil had bottomed.” It sure seems as if it has, and it sure seems as if the RBOB future price of gasoline supports the notion that oil has bottomed, but I am not so sure. The market might continue to labor around $50 for WTI crude, but if the supply and demand equation does not change, we might see oil drop further. So there!
- The European Bank for Reconstruction and Development will launch a five-year program of loans and investments in Greece that EU governments hope can foster enterprise and growth to help revive an economy hobbled by public-sector debt.
Well, imagine that – the EU is reaching out to help Greece. I guess Tsipras was able to maneuver some help from the EU, even if he did not get the country off the austerity program. This is good news for Greece, but does the market really care? Not really, as there are other matters floating around that are far more important than Greece.
- European equity indexes were flat to higher at the open on Tuesday, helped by better-than-expected German retail sales data and merger speculation in the Portuguese banking sector.
Here comes Europe, led by that once-destroyed economy, which now leads Europe. Germany has a low unemployment rate (the lowest in the EU) and it has a progressive, technological economy. Bet on it, bet on Europe, and bet on the market going up with the economic momentum. As I said, the CEOs of America are doing, so, well, almost half of them anyway.
- U.S. chief executive officers are modestly more upbeat about the economy and almost half plan to increase capital spending over the next six months, a quarterly business group survey said on Tuesday.
Today is a normal day for the market, even if the loss in the Dow is triple digits thus far. Yesterday was a bit over the top and big money recognizes that. Remember, the market is always seeking balance, even if it does not always appear that way.
Trade in the day; invest in your life …
