OUTLOOK: January 12th

Modest gains for the broad markets as they held hope for the Trump rally to continue... then the news conference late on Wednesday and the drug stocks fell nearly 3% on comments of wanting to make the process competitive... the reaction in the healthcare sector was negative. Welcome to the world of news and speculation. Once again investors worry about what the new administration will do as it relates to healthcare and other sector related issues moving forward. The challenge with that mindset is... no one knows what will really transpire or the impact of the actions. Avoiding the temptation to get caught up in the process is the key for now. Watching today as the futures point lower and headlines focus on the negative.

Eight of the eleven sectors ended higher on the day with energy (XLE) bouncing back from the recent test of support at $74. Utilities (XLU) materials (XLB) and financials (XLF) rounded out the leadership on the day. The downside came from healthcare (XLV), REITs (RWR) and telecom (IYZ) The winners and losers switched roles on Wednesday as rotation relative to new led the day. The current look at the charts shows consolidation yet again with the uncertainty building in investor actions. Gold (GLD) moved higher again holding the move through resistance at the $111.10 level and gaining some momentum on the current uncertainty. The dollar index (DXY) move was flat with the Fed worries still in place and watching how it impacts the future move. The emerging markets (EEM) are positive as well with a solid move above the $35.62 resistance and the December highs at $36.43. The Volatility Index (VIX) fell back to 11.2 as the lack of anxiety shows in the chart... but, the news from Washington could push the index higher as the anxiety builds. Overall patiently watching how this unfolds with the new year well underway and plenty of headlines on the horizon ...