Karpel’s Corner: Gold Down, Dollar Up, Stocks Mixed

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The market continues to digest that the Fed nixed quantitative easing. This resulted in mixed trading in the Equities.

The reality is that we knew the end of QE was here and is the reason for the choppy trade. That is overstating the situation. We are looking at a market that is seeing the end of QE to take a break, and is now trying to figure out the next move to jump on.

I discussed that the downside move in Volatility could be potentially signaling continuation to the upside. But, I see a caveat. Small caps have been lagging in this latest rebound. Small caps have performed well since mid-October and are still up, though less than the S&P 500. When the large caps are leading it is hard to see the upside momentum continuing with conviction. Stay on your toes today.

See you next time at the Corner!