Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 6th of September.
Early this morning, I had a reporter call me in regards to the non-farm payrolls and my thoughts on what I expected. I must admit, non-farm payrolls was the furthest thing from my mind as I believe the market and the world is becoming consumed with Syria.
It seems we have half of the world against us, including Russia and China, which is not a good thing. Why we did not wait for the UN to provide some political cover is beyond me. I think President Obama has unfortunately dug a big hole for himself and is not sure how to get out of it.
So let's take a look at the markets and see how they're acting. Crude oil is trading at over $110 a barrel. I've been bullish on crude oil for some time now, and while Syria is not a big producer, it's certainly surrounded by big producers. If this Syrian mess spreads, then it could be a real problem for the west.
One of the main beneficiaries of this whole mess has got to be Russia with their supply of oil in the ground. And of course as oil goes up, it just puts more and more money into the hands of the Middle East.
I think a lot of investors have to be disappointed with the action in gold as it really hasn't moved that much at all. From where I sit, gold is actually lower for the week.
The DOW, S&P 500 and NASDAQ are all positive for the week, with the NASDAQ up 2% thanks in large part to the tech stocks.
The dollar looks like it's coming to the end of its run and should run into resistance against the Euro at or close to current levels.
My gut feeling with Syria is that we're going to drag this out, and it is going to go on and on before anything happens. The American population will just get tired of talking and hearing about it and wish the whole mess would just go away. We do nothing and hopefully another big news cycle comes along and takes Syria and this administration off the front pages and out of the blogosphere and it just fades away.
The downside for America in the eyes of the world and especially the Chinese is that we will lose face and stature.
With that somber thought in mind, I hope you all have a safe and happy weekend.
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.