The S&P 500 has surpassed the 3000 level for the first time ever as the market celebrates dovish comments from Fed Chairman Jerome Powell. Powell's prepared comments helped to cement expectations for a rate cut at the end of the month but now the focus is on how many more cuts will follow.
The important issue here is that Powell is apparently looking for reasons to give the market the rate cuts it wants. He is highlighting economic problems and low inflation, and that paves the way for lower rates.
Equities are celebrating the move on very strong breadth of 5200 gainers to 1300 decliners. The dollar is weaker and that is helping to drive up precious metals. Bonds are not that thrilled about the news and are lagging but banks (XLF) are happy with the news.
I've used the strength this morning to cut some of my gold exposure which has been my biggest sector bet recently. I took some gains in the Gold Miners ETF (GDX) as well as Agnico Eagle (AEM) , but will be looking for reentries as they develop. I've made a couple of other sales as well but anticipate adding some new buys later.
One chart that is interesting here is Disney (DIS) which has been consolidating nicely and trying to move through recent highs around $143.
A small biotechnology chart I like is ZIOPHARM Oncology (ZIOP) which recently hired a researcher from the National Cancer Institute.
Bitcoin continues to act well but I'm cutting back my position in Grayscale Bitcoin Trust (GBTC) a little as I lock in some gains and look for new entry points.