The Dow churned higher Thursday after new economic reports showed that inflation remains in check and jobless claims are inching lower.
At the same time, concern about economic troubles in Greece flared again; that triggered dollar strength and, as a result, dragged down the materials names.
What must you know to trade this market?
Although I'm bullish on the economy the technicals make me cautious on the S&P at these levels, says Tim Seymour. I’m starting to put on shorts.
There was a lot of bearish reversals in the market on Thursday, which makes me think stocks could roll over, says Guy Adami. But with that said, I do think the S&P prints 1170 on Friday but only because of options expirations.
I’m not sold on the melt-up theory, adds Joe Terranova. A lot of the quality names are not contributing to the rally and it makes me nervous. I’m keeping an eye on Consumer Discretionary. The XLY is supporting the tape right now and if it rolls over I think the entire market goes with it.
I also took some profits on Thursday, says Karen Finerman. It wouldn’t surprise me to see a 2% correction. I’ve pared back my position in Nestle as well as IBM - stocks that have had a nice run.
I understand the argument but I just don't see it, says Steve Grasso of Stuart Frankel. I think vanilla money is putting a floor under this market. I expect the S&P to go higher from here.
CHEAP MONEY TO TRIGGER INFLATION
The government may say there’s no inflation - but Peter Boockvar of Miller Tabak says that’s -- well, BS.
He tells the desk, “Cheap money is creating asset inflation which creates a distortion in pricing which will lead more broadly to a rise in consumer prices.”
Want to hear more from Boockvar. Watch the video now!