It was a relatively dull session yesterday (Monday July 11th) with stocks gapping higher only to trade sideways up till now. As I talked about in the morning’s video, I expected stocks to grind higher, and for the VIX ETF to keep moving lower for another day or three.
Coffee continues to be on a caffeine-high today, testing near highs. It looks as though it will continue to run higher in the coming days.
Precious metals continue to hold up, but I don’t expect them to go much higher until equities reverse down in the next week or so.
A couple leading sectors have been underperforming (transports and financials). The stock market needs the financials to take part in this rally to new highs for the S&P 500 if the market is to have any real power behind it. The fact that both these key sectors are underperforming tells me there is not a ton of power behind this move to new highs for large cap stocks.
Financial Select Sector SPDR (NYSE:XLF)
iShares Transportation Average (NYSE:IYT)
