A beneficial combination of strong 3rd quarter GDP and quarterly derivatives expiration resulted in markets vaulting to new all-time highs. While we are now in the midst of the year-end holiday doldrums, there are reasons to believe that the markets can forge higher, not only through the dropping of the ball on New Year’s Eve but into the New Year.
What is likely to propel the markets today is news from China. First, the Chinese benchmark interest rate traded lower, a positive sign that China is looking to stimulate its own economy. That’s the macro news. The micro news is that China Mobile (CHL) has agreed to sell Apple (AAPL) iPhones. That bit of news helped to propel US futures higher overnight and will likely result in a strong bid in Apple shares when trading commences.
Unfortunately, I am going to have to cut my day short today. The mother of a close friend passed away and I will be attending the funeral late in the morning. Later on we have shiva (condolence) calls to make to his family and then another friend who also lost a parent. This comes after a similar visit today. They say things occur in threes. Of course, I will have my own iPhone with me at all times to keep an eye on the markets.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL — although positions can change at any time.
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