FinancialAdvisor's College Class (FACC)

[FinancialAdvisor]

***The markets today: Ok so the markets managed to fend off record high oil prices. We saw an initial sell-off on low-volume in the markets, then we saw a low-volume chop until about 2 PM as oil prices dropped into the close with May futures closing slightly lower at $57.01 as pointed out, the XOI didn't confirm the early morning's record high oil quotes.

But is it time to get bullish on the equity markets? Fundamentally, no. Oil is still richly valued over $50/barrel, even $45+ is rich by my estimations and will begin to hinder future economic growth. Technically, let us not forget that even though today the Dow managed to fend off it's 200 day SMA and the S&P 500 still trades sizably above it's pivotal 200 day SMA that the Q's and the Nasdaq Composite which managed to outgain each of these broader markets today still managed to close just under their 200 day SMA's... Let's also keep in mind that even though everything today managed to close higher from the Q's to the Dow that the volume did not confirm. All across the board, volume was lower this Monday April, 4th then it was on Friday.

Going forward, it seems people are becoming wiser and are looking more & more into actual company fundamentals and earnings which are more or less suggesting that the market is very richly valued. So how will this all end? Well no one knows, but what I do know for sure is that going back through history, the markets are at a historical high point in fundamental valuations, especially vs. preceding earnings... stay tuned...