The market has been seesawing all day, reflecting anxiety about the FOMC minutes due out at 2PM (I will dissect them with some of the brightest minds on Wall Street on Making Money). Growth powered the NASDAQ higher out of the gate and now value it slightly ahead. The most important thing to note for the moment is how a small rally failed early, and all the major indices moved into the red, before another course correction took it higher. That's the resolve I love in the market and that has largely been in place since March 2009.
With yields lower, and commodities prices down, the action in homebuilders and appliances is appealing.
Lumber is still up huge from last year, but the recent pullback continues:
- -2.3% today
- -33.62% month
- -11.3% year
To see the chart, click here.
Brace for a tick up in volatility from those FOMC minutes. I do not think there was a revolt and suspect the street will be able to discern that accommodation is still on, for a long time.
